Bithumb CEO Investigated for Bribery in South Korea

South Korean police have booked Lee Jae-won, the CEO of cryptocurrency exchange Bithumb, as a suspect in a bribery investigation. This investigation pertains to allegations that he hired the son of National Assembly member Kim Byung-ki at the lawmaker's request. The hiring reportedly occurred during a meeting at a restaurant in November 2024, and the individual in question joined Bithumb in January 2025.

Authorities allege that Kim exploited his position on a committee overseeing financial regulations to target Bithumb's competitor, Dunamu, during committee proceedings. As part of their investigation, police have conducted searches at Bithumb's headquarters on two occasions in 2026, specifically on February 24 and June 8.

This bribery case is part of a larger investigation into corruption within South Korea's cryptocurrency sector. Kim faces numerous allegations, including nomination bribery, and has been called for questioning by police multiple times. Separately, Bithumb has encountered regulatory issues, including a $24.5 million fine and a partial business suspension order for violations related to anti-money laundering and customer compliance, although this suspension was temporarily stayed by the court.

Bithumb operates in a competitive environment against Dunamu's Upbit and has seen significant trading volume, recently processing around $441 million. The exchange's legal troubles highlight ongoing scrutiny in the Korean digital asset market, where recent scandals have drawn public attention and criticism of financial regulators.

The ongoing investigation and legal outcomes will likely influence Bithumb's position in the market, especially as it faces scrutiny for transparency and regulatory compliance in a sector often characterized by significant volatility and risk.