Key Highlights
- South Korean police raided Bithumb as part of an investigation into claims that lawmaker Kim Byung-gi helped his son secure a job at the crypto exchange.
- Authorities are also examining Kim’s actions in parliament, including questions he directed at crypto firm Dunamu.
- Bithumb is facing pressure on multiple fronts, with the hiring probe unfolding alongside an ongoing regulatory dispute.
South Korean police reportedly raided crypto exchange Bithumb as part of an ongoing investigation into alleged nepotism involving independent lawmaker Kim Byung-ki.
According to a local report, the search was led by the Seoul National Police Agency’s Public Crime Investigation Team at Bithumb’s headquarters in Seoul. The investigation centers on allegations that Kim used his political influence in 2025 to help his son get jobs in the crypto industry, including a role at Bithumb.
Investigators examine possible preferential hiring
Kim Byung-ki is suspected of trying to influence hiring at more than one crypto firm, including Bithumb and Dunamu, which runs the Upbit exchange. According to the report, Kim’s son was hired by Bithumb around January 2025 and worked there for about six months.
Investigators are checking if the job was given fairly or if there was any outside pressure or special treatment because of Kim’s position as a lawmaker.
Authorities had already taken some action before this raid. Since February, they have called in exchange executives to give statements as witnesses. They also carried out search and seizure operations at Bithumb’s main office in Gangnam and at its Financial Tower building.
In April, investigators continued by questioning more people linked to the company, slowly building a picture of what may have happened during the hiring process and after.
Probe expands beyond hiring allegations
The investigation now extends beyond the employment case itself. According to the report, Kim, while serving on the National Assembly’s Political Affairs Committee, which oversees financial regulators, asked several questions in parliament that focused on Dunamu.
Because his son worked in a company connected to the crypto sector, police are now checking if those questions were used to indirectly support his son’s workplace or create influence in the industry.
Kim has been questioned several times by police and reportedly faces scrutiny over 13 different allegations. These include claims related to helping with job placements, nomination-related bribery, and even requests connected to university transfer issues for his son.
During one of his police interviews, he said, “I am confident in proving my innocence,” and denied doing anything illegal. Officials have not yet said if they will call him in again. The Seoul National Police Agency has also made it clear that the case is still open.
Bithumb faces separate regulatory challenges
The investigation adds to a growing list of challenges facing Bithumb. The exchange is already under pressure from regulators over Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance failures.
In March, South Korean financial regulators imposed a $24.5 million fine along with a six-month partial suspension order after inspections carried out in 2025. The penalties included limits on onboarding new users as part of corrective measures.
However, in April, a South Korean court temporarily stopped that suspension after Bithumb challenged the regulator’s decision. This means the punishment is on hold while the legal battle continues in court.
Authorities continue to collect testimony and review documents as the probe expands across both political and corporate lines. No new summons schedule has been announced so far.
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