South Korean prosecutors raid Bithumb cryptocurrency exchange headquarters
South Korean prosecutors have raided the headquarters of cryptocurrency exchange Bithumb in Seoul. The investigation concerns allegations that company funds allocated to executives for luxury housing were misused.
According to local news outlet News1, prosecutors from the Seoul Southern District Prosecutors' Office arrived at Bithumb's headquarters in the Gangnam district on the morning of October 29. Investigators are seizing documents and other materials as part of an investigation that has been ongoing since last year.
South Korea's Financial Supervisory Service (FSS) previously found that the exchange had provided housing benefits worth a total of 11.6 billion won (approximately $8 million) to four current and former executives. The regulator suspected that some of the funds may have been used for personal purposes.
In March 2025, prosecutors had already raided Bithumb's offices in connection with the same case. At the time, investigators were examining allegations that former CEO Kim Dae-sik may have used corporate funds to purchase an apartment in Seoul.
According to investigators, the company provided him with 3 billion won as a housing lease deposit. However, the money may have been used to purchase the property instead.
Exchange faces regulatory scrutiny
The latest raids come amid growing scrutiny of cryptocurrency platforms by South Korean authorities. In October, lawmaker Lee Kang-il raised concerns about insufficient oversight of exchange executives, citing alleged misconduct at Bithumb and irregularities involving token listings.
In March 2026, South Korean financial regulators fined Bithumb 36.8 billion won (approximately $24.5 million) for numerous violations of anti-money laundering requirements. The investigation uncovered around 6.65 million violations involving customer identity verification and transaction monitoring.
The regulator also imposed six-month restrictions on certain cryptocurrency transactions for new customers of the exchange. However, in May, a court suspended enforcement of the decision after Bithumb challenged the penalty.
Prosecutors have not yet disclosed the results of the latest raids or indicated whether charges will be filed against those involved in the investigation.
Bithumb's position in the cryptocurrency market
Bithumb is South Korea's second-largest cryptocurrency exchange after Upbit. According to CoinGecko, it accounted for approximately 28.7% of the combined trading volume of the country's five largest exchanges in the first half of October 2026, while Upbit held nearly 60%. Together, the two platforms dominate the South Korean market, significantly outpacing Coinone, DigitalX, and Gopax.
Competition among exchanges is intensifying. In recent months, Bithumb has tried to attract customers through low trading fees and promotional campaigns, but its market share has fluctuated considerably. In August, it temporarily fell below 20% before recovering to nearly 30% by October. Meanwhile, smaller exchanges have stepped up efforts to attract users, including by offering zero-fee trading.
Bithumb also suffered a cyberattack the previous day.
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