Bithumb CEO booked as suspect after allegedly hiring lawmaker's son for 6 months 🎓

South Korean police have booked Bithumb CEO Lee Jae-won on suspicion of bribery, accusing him of hiring the son of independent lawmaker Kim Byung-gi in connection with what investigators describe as a politically motivated employment scheme. The alleged arrangement traces back to a November 2024 restaurant meeting in Seoul's Mapo district, where Kim is said to have asked the CEO to employ his second son, according to local media reports. The son joined Bithumb in January 2025 and remained at the exchange for approximately six months. Kim previously served on the National Assembly's Political Affairs Committee, which oversees the nation's financial regulator.

The investigation has expanded beyond the initial hiring allegations. Police have executed search warrants at Bithumb headquarters on February 24 and again on June 8, and Kim has been summoned by investigators approximately seven times. He faces 13 separate suspicions, including nomination bribery and alleged requests connected to a university transfer. During his sixth appearance before investigators, Kim said he was confident he would be cleared of wrongdoing. Authorities are also examining whether Kim, while serving on the Political Affairs Committee, repeatedly directed questions at Dunamu, the operator of rival exchange Upbit, in proceedings that overlapped with his son's tenure at Bithumb.

Bithumb's regulatory troubles extend beyond the bribery probe. In March, South Korean financial regulators issued the exchange a $24.5 million fine alongside a six-month partial suspension order following 2025 inspections that identified Know Your Customer (KYC) and Anti-Money Laundering (AML) shortcomings, with the restrictions particularly affecting new user onboarding. A South Korean court temporarily blocked implementation of the suspension in late April after Bithumb challenged the regulator's decision, pausing enforcement while legal proceedings continue. Separately, the Financial Services Commission and Financial Supervisory Service (FSS) are facing scrutiny after they failed to detect a structural input issue that led to roughly $43 billion in Bitcoin being accidentally credited to user accounts, despite having reviewed Bithumb at least three times since 2022.

According to CoinGecko data, Bithumb processed $441 million in trading volume over the past day. The exchange continues to operate alongside competitor Upbit in South Korea's digital asset market as police gather additional testimony, with authorities not yet announcing whether further summonses are planned in the case.