TLDR
- South Korean police booked Bithumb CEO Lee Jae-won as a bribery suspect.
- The probe centers on alleged hiring favors for lawmaker Kim Byung-kee’s son.
- Police are reviewing whether Kim later pressured Upbit operator Dunamu.
- Bithumb’s Seoul offices were searched in February and again on June 8.
- Bithumb was previously fined 36.8B won, about $24.5M, for AML violations.
South Korean police have booked Bithumb Chief Executive Officer Lee Jae-won as a bribery suspect in an investigation tied to alleged hiring favors involving the son of independent lawmaker Kim Byung-kee.
The Seoul Metropolitan Police Agency’s Public Crime Investigation Unit is examining whether Lee helped arrange employment at Bithumb after a request connected to Kim. The case also includes questions over whether Kim later used parliamentary activity to pressure Dunamu, the operator of Upbit and Bithumb’s largest domestic rival.
The allegations remain under investigation. No court has found Lee, Kim or other individuals guilty, and police are expected to review seized materials before deciding whether to question additional people linked to the hires.
Why was Bithumb CEO Lee Jae-won booked by police?
Lee Jae-won was booked as a bribery suspect over allegations that Bithumb gave hiring favors to people connected to lawmaker Kim Byung-kee. Investigators are checking whether Kim’s second son received preferential treatment after a meeting involving Lee in late 2024.
The case centers on claims that Kim asked Bithumb to hire his son. Local reports said the son joined Bithumb in January 2025 and stayed for about six months.
Investigators also obtained a statement from a former aide, who reportedly said Kim met Lee at a restaurant in Mapo, Seoul, in November 2024. Police are reviewing whether employment was discussed during that gathering.
The probe also covers a separate hiring allegation involving an aide who worked in Kim’s office. That aide reportedly joined Bithumb in September 2025.
How is Upbit connected to the Bithumb bribery investigation?
Police are reviewing whether Kim used parliamentary activity to pressure Upbit operator Dunamu after the alleged hiring request. Investigators are examining whether questions about Upbit’s market position were linked to Bithumb’s interests.
Kim served on the National Assembly’s Political Affairs Committee, which oversees South Korea’s Financial Services Commission. That role placed him in a position to raise issues affecting crypto exchanges and financial regulation.
Aides cited in local reports alleged that Kim told staff to prepare questions targeting Dunamu’s “monopoly issues.” Police are reviewing whether those committee actions amounted to a legislative campaign that may have favored Bithumb.
Upbit is South Korea’s largest crypto exchange, while Bithumb is the second-largest. Any official pressure on Dunamu could draw attention because both companies compete in one of the world’s most active digital asset markets.
What happens next in the Bithumb investigation?
Police are expected to examine seized documents and question people connected to the hiring process before deciding whether to pursue formal charges. The investigation has already included searches of Bithumb’s offices and related locations.
Police raided Bithumb’s Seoul headquarters and a related office tower in February as part of the probe. A second search warrant was executed on June 8, covering Bithumb’s headquarters in Gangnam-gu and other locations.
During the earlier search, police reportedly listed Kim as a bribery suspect over alleged preferential treatment involving his son, while Bithumb was treated as a witness. Lee was named as a suspect during the later stage of the investigation.
The case adds pressure to Bithumb during a difficult year for the exchange. South Korean regulators previously fined Bithumb 36.8 billion won, or about $24.5 million, over anti-money laundering violations.
The exchange also faced questions after a February internal error briefly credited users with large Bitcoin balances. Bithumb later delayed its IPO plans until after 2028 while working on accounting and internal control improvements.
Kim is also facing broader probes tied to alleged influence-peddling and employment-related matters. He has reportedly said he will prove his innocence as the cases proceed.
