Bithumb Faces Another Regulatory Storm as South Korean Police Investigate Lawmaker's Influence-Peddling Allegations

Odaily, 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 about six months. Police are investigating whether the hiring process involved external pressure or preferential treatment. Furthermore, the case has also implicated Dunamu, the operator of South Korea's largest crypto exchange Upbit, expanding the scope of the investigation from a mere hiring issue to potential abuse of power and conflict of interest.

Investigators noted that during his tenure on the National Assembly's Political Affairs Committee, Kim Byung-gi had repeatedly raised questions regarding Dunamu at committee meetings, sparking suspicions that he was trying to benefit his son's employer.

It is understood that police have previously questioned executives from several crypto companies and have conducted search and seizure operations at Bithumb's headquarters and Bithumb Financial Tower. Kim Byung-gi himself is under investigation for 13 charges, including job arrangement, bribery related to nominations, and requests concerning university transfers. He has stated that he believes his innocence will ultimately be proven.

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 violations related to KYC and Anti-Money Laundering (AML) regulations, and issued a partial business suspension order for six months. However, a South Korean court temporarily suspended the penalty implementation in late April, and the relevant legal proceedings are still ongoing. (Cointelegraph)