South Korean police have reportedly searched Bithumb’s offices as part of an investigation into allegations that independent lawmaker Kim Byung-gi used his political influence to help secure employment for his son at cryptocurrency companies.
Summary
- South Korean police searched Bithumb as part of an investigation into allegations that lawmaker Kim Byung-gi sought jobs for his son at crypto firms.
- Authorities are examining whether Kim’s position influenced hiring decisions at Bithumb and Upbit operator Dunamu.
- The investigation adds to regulatory pressure on Bithumb, which is already contesting a $24.6 million AML-related penalty in court.
According to a Monday report from News1, investigators carried out the raid while examining claims that Kim sought to influence hiring decisions at both Bithumb and Dunamu, the operator of Upbit, South Korea’s largest crypto exchange.
The report said Kim’s son joined Bithumb in January 2025 and remained with the company for roughly six months. Authorities are examining whether the recruitment process involved outside pressure or preferential treatment connected to Kim’s position.
South Korean investigators have reportedly questioned Kim multiple times while reviewing whether any laws were broken through the alleged use of political influence. News1 reported that scrutiny expanded after disclosures showed Kim repeatedly raised questions about Dunamu while serving on the National Assembly’s Political Affairs Committee, which oversees the country’s financial regulator.
Those interactions drew attention because Kim’s son was reportedly employed at the company during that period, prompting investigators to examine whether the lawmaker’s parliamentary activities and his son’s employment were connected.
Investigation expands as prosecutors review multiple allegations
Earlier stages of the inquiry already involved testimony from executives at major crypto exchanges.
According to the report, police summoned exchange officials as witnesses in February before conducting a separate search and seizure operation at Bithumb headquarters and Bithumb Financial Tower.
Additional questioning continued in April, when investigators interviewed more individuals linked to the exchange as they gathered evidence.
Kim also appeared before investigators in April regarding 13 separate allegations, according to News1. Those allegations included claims related to nomination bribery, employment favors connected to his son, and requests concerning a university transfer. During his sixth appearance before authorities, Kim reportedly said he believed he would ultimately be cleared of wrongdoing.
Hiring favoritism remains a politically sensitive issue in South Korea, where previous controversies involving politicians and large corporations have triggered public debate over influence-peddling, recruitment practices, and access to opportunities.
Bithumb faces legal and regulatory challenges
The latest investigation comes as Bithumb continues to battle South Korean regulators over compliance penalties imposed earlier this year.
In March, the Financial Intelligence Unit fined the exchange ₩36.8 billion, about $24.6 million, and ordered a six-month partial business suspension after identifying alleged Know Your Customer and Anti-Money Laundering failures. Regulators said Bithumb had facilitated 45,772 virtual asset transfers involving 18 unregistered overseas virtual asset service providers and cited 6.65 million alleged violations under the Specific Financial Information Act.
Under the sanction, new users would have been restricted from depositing or withdrawing external crypto assets, a measure that industry observers said could have limited customer growth.
Court records cited by Yonhap showed that Seoul Administrative Court granted Bithumb a stay of execution in May, temporarily halting enforcement of the suspension while the exchange challenges the FIU’s decision through a separate lawsuit. The ruling paused the restrictions but did not cancel the underlying sanctions.
Despite the legal hiccups, Bithumb has continued pursuing expansion plans. In May, the exchange signed a memorandum of understanding with SSI Digital Technology, an affiliate of Vietnamese securities firm SSI Securities, to explore the launch of a regulated digital asset exchange in Vietnam.
The proposed partnership covers exchange infrastructure, custody, security, compliance systems, and institutional services, though any investment or operating plans remain subject to approval from Vietnamese authorities.
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