Bithumb is once again embroiled in regulatory turmoil, as South Korean police investigate allegations of lawmakers interfering in hiring practices

Recently, the South Korean police raided the cryptocurrency exchange Bithumb to investigate independent lawmaker Kim Byung-gi for allegedly using his influence to secure employment opportunities for his son. It is reported that Kim's son joined Bithumb in January 2025 and worked for about six months. The police are investigating whether there was any external pressure or special treatment during his hiring process.

In addition, the case also involves Dunamu, the operator of South Korea's largest cryptocurrency exchange Upbit, with the scope of the investigation expanding from simple hiring issues to potential power rent-seeking and benefit delivery. Investigators pointed out that Kim Byung-gi had repeatedly questioned Dunamu during meetings while serving as a member of the South Korean National Assembly's Policy Committee, raising doubts about whether he was attempting to benefit the company where his son worked.

It is understood that the police had previously questioned executives from several cryptocurrency companies and had conducted searches at Bithumb's headquarters and Bithumb Financial Tower to gather evidence. Kim Byung-gi himself is under investigation for 13 charges, including employment arrangements, bribery in nominations, and requests related to university transfers, and he stated that he believes he will ultimately be able to prove his innocence.

It is noteworthy that Bithumb has been facing ongoing regulatory pressure recently. In March of this year, South Korea's financial regulatory agency imposed a fine of approximately $24.5 million on Bithumb for KYC and anti-money laundering (AML) violations and issued a six-month partial business suspension order. However, the South Korean court temporarily suspended the enforcement of the penalty at the end of April, and the relevant legal procedures are still ongoing.