Bithumb CEO Booked as Suspect Over South Korea Bribery Case

South Korean police have booked Bithumb CEO Lee Jae-won on suspicion of bribery for allegedly hiring the relative of a local lawmaker.

According to reports in local media, the alleged scheme centers on National Assembly member Kim Byung-ki, an independent lawmaker who served on the Political Affairs Committee overseeing financial regulation.

Kim allegedly requested the Bithumb CEO hire his second son during a November 2024 restaurant meeting in Seoul’s Mapo district. His son joined Bithumb in January 2025 and worked there for approximately six months, according to local reports. Investigators allege Kim then exploited his legislative position by repeatedly targeting Bithumb competitor Dunamu during committee proceedings.

Seoul police executed search warrants at Bithumb headquarters on February 24 and again on June 8 as the investigation intensified.

The bribery investigation represents just one facet of a broader corruption probe. Kim faces 13 separate suspicions including nomination bribery and has been summoned by police approximately seven times.

Bithumb’s legal troubles extend beyond the hiring scandal. South Korean financial regulators issued a $24.5 million fine and six-month partial suspension order to the exchange in March for anti-money laundering and know-your-customer compliance deficiencies. A court temporarily blocked the suspension in late April after Bithumb challenged the decision.

Bithumb, which processed $441 million in trading volume over the past day per CoinGecko data, competes directly with Dunamu-operated Upbit for market dominance in South Korea’s digital asset sector. The exchange has faced multiple regulatory storms this year, with the court-ordered stay on its six-month business suspension coming after lawmakers criticized regulators over a $43 billion Bitcoin display error affecting thousands of users.

The alleged bribery case adds to a pattern of corruption cases in Korea’s crypto sector, including a recent case where a police officer involved in investigating crypto fraud cases was sentenced to six years for accepting bribes.