Bithumb Faces Another Regulatory Storm as South Korean Police Investigate Lawmaker’s Interference in Hiring Allegations

Odaily Odaily reported that South Korean police recently raided cryptocurrency exchange Bithumb to investigate allegations that independent lawmaker Kim Byung-gi used his influence to secure a job for his son. It is reported that Kim’s son joined Bithumb in January 2025 and worked there for approximately six months. Police are investigating whether there was any external pressure or special favoritism in his hiring process. Additionally, the case involves Dunamu, the operator of South Korea's largest crypto exchange Upbit, with the investigation scope expanding from a simple hiring issue to potential power-for-rent and conflict of interest.

Investigators noted that during his tenure on the National Assembly’s Steering Committee, Kim Byung-gi had repeatedly raised questions regarding Dunamu at committee meetings, sparking external suspicions of whether he was seeking to benefit his son’s employer.

It is understood that police have previously questioned executives from multiple crypto firms and have conducted searches and seizures at Bithumb’s headquarters and Bithumb Financial Tower. Kim Byung-gi himself is under investigation on 13 charges, including allegations related to job placements, bribery in nominations, and requests concerning university transfers. He has stated that he believes he will ultimately be able to prove his innocence.

Notably, Bithumb has been facing sustained regulatory pressure recently. In March this year, South Korea’s financial regulator fined Bithumb approximately $24.5 million for KYC and anti-money laundering (AML) violations, and issued a six-month partial business suspension order. However, in late April, a South Korean court temporarily suspended the enforcement of this penalty, and the relevant legal proceedings are still ongoing. (Cointelegraph)