Bithumb CEO Under Fire in Political Hiring Investigation

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South Korean police have named Bithumb CEO Lee Jae-won as a bribery suspect in an investigation into the alleged hiring of a lawmaker’s son. Investigators are examining whether the country’s second-largest crypto exchange granted employment in exchange for favorable political treatment. The case adds to a growing list of legal and regulatory challenges facing Bithumb this year.

Police Probe Alleged Political Favor Linked to Bithumb Hiring

According to a June 11 report by South Korea’s Yonhap News Agency, the Seoul Metropolitan Police Agency’s Public Crime Investigation Unit is investigating Lee Jae-won and Bithumb on bribery-related allegations connected to independent lawmaker Kim Byung-gi.

Police believe Kim requested that Lee hire his second son during a meeting at a restaurant in Seoul’s Mapo district in November 2024. The allegation is based on testimony from a former aide who previously exposed several claims involving the lawmaker.

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Investigators suspect the alleged hiring may have been tied to Kim’s role on the National Assembly’s Political Affairs Committee. According to police, Kim focused part of his legislative activity on criticizing alleged monopoly practices involving Dunamu, the operator of rival crypto exchange Upbit, after his son secured employment at Bithumb.

Authorities are also examining claims that Kim asked Bithumb to hire one of his former aides. That individual reportedly joined the exchange in September 2025.

Earlier this month, police named Lee as a bribery suspect in a second search warrant executed at Bithumb’s headquarters in Seoul’s Gangnam district. During an earlier raid in February, Kim was already listed as a bribery suspect, and Bithumb was classified as a reference party in the investigation.

Latest Probe Adds to Bithumb’s Legal Challenges

Police is currently analyzing materials it seized during the searches and should question current and former employees involved in the recruitment process to determine whether they were aware of any employment requests.

Neither Lee nor Bithumb has publicly responded to the latest allegations.

The investigation comes as Bithumb continues to deal with several separate regulatory issues. In May, a South Korean court temporarily suspended a six-month partial business restriction imposed by the country’s Financial Intelligence Unit as the exchange challenges the sanctions.

Earlier this year, Bithumb also pursued legal action to recover Bitcoin (BTC) it mistakenly distributed during a promotional campaign after a system error resulted in sending crypto instead of Korean won.

The latest bribery investigation adds another layer of uncertainty for one of South Korea’s largest cryptocurrency exchanges as regulators continue increasing scrutiny of the country’s digital asset sector.