Bithumb CEO Lee Jae-won booked on bribery suspicion over legislator's relative
In brief
- Bithumb CEO Lee Jae-won booked on bribery suspicion for allegedly hiring National Assembly member Kim Byung-ki's son.
- Kim Byung-ki allegedly requested the hire in November 2024 and used legislative position to target rival Upbit.
- Kim faces 13 separate suspicions and has been summoned by police approximately seven times.
The Alleged Arrangement
National Assembly member Kim Byung-ki, an independent lawmaker on the Political Affairs Committee overseeing financial regulation, allegedly requested the Bithumb CEO hire his second son during a November 2024 restaurant meeting in Seoul's Mapo district. Kim's son joined Bithumb in January 2025 and worked there for approximately six months.
The arrangement appears designed to secure more than just employment. Investigators allege Kim then exploited his legislative position by repeatedly targeting Bithumb competitor Dunamu during committee proceedings. Dunamu operates Upbit, which competes directly with Bithumb for market dominance in South Korea's digital asset sector.
Investigation Escalates
Seoul police executed search warrants at Bithumb headquarters on February 24 and again on June 8 as the investigation intensified. Kim faces 13 separate suspicions including nomination bribery and has been summoned by police approximately seven times.
The timing compounds Bithumb's regulatory troubles. 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.
The bribery case reflects broader governance concerns in South Korea's crypto sector. A police officer involved in investigating crypto fraud cases was sentenced to six years for accepting bribes, underscoring systemic corruption risks. Bithumb, which processed $441 million in trading volume over the past day per CoinGecko data, now faces potential reputational damage as authorities pursue the investigation.
