Police investigate Bithumb chief over hiring of lawmaker's son

Traders Union
All News
Crypto News
Police investigate Bithumb chief

Details of the incident

The investigation is linked to allegations that the lawmaker asked Bithumb to hire his second son. Police are also checking whether Kim later carried out parliamentary activity that may have benefited the crypto exchange.

Investigators have reportedly obtained testimony from a former aide. According to the testimony, Kim met Lee at a restaurant in Mapo, Seoul, in November 2024 and raised the employment request during the meeting.

At the time, Kim served on the National Assembly’s Political Affairs Committee, which oversees South Korea’s Financial Services Commission. Police are examining whether his work on crypto exchange-related issues may have been connected to the alleged hiring request.

According to Yonhap, investigators believe Kim focused on “monopoly issues” involving Dunamu, the operator of Upbit and one of Bithumb’s main competitors. Police are checking whether those actions may have been linked to his son’s employment.

The investigation also covers another possible hiring case. Law enforcement officials are checking whether Kim asked Bithumb to hire an aide from his office. According to media reports, that person joined Bithumb in September last year.

Searches at Bithumb’s office

On June 8, police conducted another search at Bithumb’s headquarters in Gangnam-gu and other locations. Lee was listed as a suspect in the new warrant.

During a previous search in February, police named Kim as a bribery suspect over alleged preferential treatment involving his son. At that stage, Bithumb was treated as a witness in the case.

Investigators are expected to review the seized materials before questioning people linked to the hiring process. According to Yonhap, police may summon the aide and other figures involved to clarify the details of the hiring and what they knew about the alleged requests.

An important regional platform

Bithumb is one of South Korea’s key crypto exchanges and one of Upbit’s main competitors in the local market. According to industry estimates, Bithumb accounts for about a quarter of domestic crypto trading volume in the country, while Bithumb and Upbit together effectively form the backbone of South Korea’s digital asset market.

Bithumb’s importance goes beyond that of a regular trading platform. South Korea remains one of Asia’s most active crypto markets, so any problems at a major local exchange quickly become an issue not only for users, but also for regulators, investors and the broader industry. Against this backdrop, the investigation into Bithumb is seen as an important test of trust in the region’s crypto market infrastructure.

As a reminder, South Korea fined Bithumb $24.5 million for anti-money laundering violations.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.