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South Korean police have booked Bithumb CEO Lee Jae-won on bribery allegations. He’s accused of offering employment to a lawmaker’s son in exchange for legislative help — a deal that, if proven, could reshape the legal landscape for one of the country’s biggest crypto exchanges.
The alleged arrangement traces back to a meeting in November 2024. Lee reportedly agreed to hire the son of Kim Byung-ki, a sitting member of South Korea’s National Assembly Political Affairs Committee. Kim didn’t just ask for a job for his son, though. He also pushed for Bithumb to take on an aide from his own office. What he allegedly offered in return was influence — specifically, the use of his committee position to amplify scrutiny on Dunamu, a direct competitor of Bithumb. A former aide of Kim later told investigators that intensified legislative pressure on Dunamu was essentially part of the employment deal. Kim’s son was hired in January 2025 and worked at Bithumb for roughly six months before the arrangement came under police scrutiny.
The investigation opened on June 11.
Raids, Suspects, and a Pattern of Scrutiny
Bithumb’s offices have seen police more than once this year. Investigators searched the company’s premises earlier in 2025 specifically over the alleged hiring deal involving Kim’s son. Then, on June 8, a second raid named Lee Jae-won as a formal suspect. That’s a meaningful escalation — going from a search to a named suspect puts Lee in a much more exposed legal position, and it probably means investigators feel they have enough to push forward.
Kim Byung-ki is also under the microscope for more than just the Bithumb arrangement. Investigators are looking into whether he used his influence to secure favorable conditions for his son’s university transfer. There are also questions about whether Kim received dubious political funding that may be connected to the broader scheme. No charges have been confirmed on those fronts, but the scope of the probe seems to be widening.
Bithumb hasn’t commented publicly on the current allegations against Lee.
A Long History of Legal Trouble
It’s worth being clear: this isn’t Bithumb’s first run-in with South Korean law enforcement. Not even close. Former Bithumb CEO Kim Dae-sik was previously implicated in the misappropriation of funds, which led to a separate raid last year. And Lee Sang-jun, CEO of Bithumb’s parent company, faced scrutiny over allegations of accepting bribes in exchange for cryptocurrency listings — a different kind of pay-to-play scandal, but one that fits an uncomfortable pattern.
Back in 2023, a separate investigation targeted both Bithumb and rival exchange Upbit over suspicious crypto holdings linked to another South Korean lawmaker. The details of that case raised its own set of questions about how political figures in South Korea were acquiring and using digital assets. That investigation added Upbit to the picture, which made it bigger than just a Bithumb problem — but Bithumb’s name kept coming up.
So the latest allegations against Lee Jae-won land on top of years of accumulated legal pressure. It’s hard to look at the timeline and not see a company that’s struggled, repeatedly, to keep its executive conduct clean.
South Korea has been one of the more aggressive regulators in the crypto space globally. The country’s authorities have shown they’re willing to move against major domestic exchanges, not just smaller operators. Bithumb, as one of the largest platforms in the country, has clearly not been shielded by its size. If anything, its prominence has made it a bigger target.
The involvement of National Assembly members in two separate Bithumb-related investigations — Kim Byung-ki now, and the unnamed lawmaker in the 2023 Upbit case — probably raises broader questions in Seoul about the relationship between the crypto industry and political figures. That’s murky territory, and it’s unclear yet how far investigators plan to go.
For now, Lee Jae-won is booked. Kim Byung-ki is a suspect. And Bithumb, for the third or fourth time depending on how you count, is at the center of a criminal investigation in South Korea. Kim’s son worked at the exchange for approximately six months.
Frequently Asked Questions
What exactly is Bithumb CEO Lee Jae-won accused of?
Lee Jae-won is accused of offering a job at Bithumb to the son of National Assembly member Kim Byung-ki in exchange for legislative assistance, including pressure on competitor Dunamu. South Korean authorities booked him as a suspect following a raid on June 8.
Has Bithumb faced legal trouble before this investigation?
Yes. Former Bithumb CEO Kim Dae-sik was implicated in fund misappropriation, Bithumb’s parent company CEO Lee Sang-jun faced bribery allegations over crypto listings, and a 2023 investigation linked both Bithumb and Upbit to suspicious crypto holdings tied to a South Korean lawmaker.
