South Korean police have booked Bithumb CEO Lee Jae-won as a bribery suspect in an investigation into alleged job-for-favors tied to the son of independent lawmaker Kim Byung-kee, Yonhap News reported June 11. The Seoul Metropolitan Police Agency’s Public Crime Investigation Unit is probing whether Lee arranged employment at Bithumb after a request from Kim and whether any subsequent parliamentary activity by the lawmaker benefited the exchange.
What investigators are examining
- Police say a former aide told them Kim met Lee at a Mapo restaurant in November 2024 and raised the employment request for his second son. Investigators obtained that aide’s statement during the inquiry.
- Kim served on the National Assembly’s Political Affairs Committee, which oversees the Financial Services Commission. Authorities are reviewing whether Kim’s parliamentary work on crypto-related matters—reportedly including “monopoly issues” involving Dunamu, the operator of rival exchange Upbit—was linked to the alleged hiring request.
- The probe also covers a separate allegation that Kim sought a job at Bithumb for a former aide; that aide reportedly joined the exchange in September 2025.
- Police executed a second search warrant on June 8 that named Lee as a suspect and included searches at Bithumb’s Gangnam headquarters and other locations. In February, police had already listed Kim as a bribery suspect while treating Bithumb as a witness.
Next steps and legal status
Investigators are reviewing seized materials and are expected to summon the former aide and others connected to the hiring decisions to clarify who knew what and when. The probe is ongoing; police have not issued final findings and the allegations against Lee, Kim and others have not been proven in court.
Context for the crypto sector
The case lands amid a challenging period for Bithumb. South Korean regulators fined the exchange 36.8 billion won (about $24.5 million) for anti-money-laundering violations earlier this year. Bithumb also suffered an internal error in February that briefly credited users with enormous Bitcoin balances, and the firm has postponed its IPO until after 2028 while working to strengthen accounting and internal controls.
Why it matters
The investigation highlights continuing scrutiny of ties between political actors and major crypto platforms in South Korea. Any findings of illicit influence or preferential treatment could deepen regulatory pressure on exchanges and affect public and investor confidence in the country’s crypto market.
Reporting is based on Yonhap’s accounts; authorities’ investigations are ongoing and the individuals named are presumed innocent until proven guilty.
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