In a significant turn of events for South Korea’s crypto landscape, Bithumb, one of the largest cryptocurrency exchanges in the country, was raided again by police on Monday. This latest search is part of an ongoing investigation into allegations of corruption involving independent lawmaker Kim Byung-ki and claims that his son’s hiring at the exchange may have been influenced by political pressure.
The Seoul Metropolitan Police Agency’s public crime team conducted the raid at Bithumb’s Gangnam headquarters, marking the second time investigators have targeted the exchange in a matter of months. The first search occurred on February 24, with follow-up inquiries in April, indicating that the case is drawing increasing scrutiny.
Investigators are aiming to verify whether Bithumb’s internal records, hiring files, and communications align with the exchange’s public statements regarding the hiring practices in question. The current probe suggests a deepening investigation into the relationship between political influence and corporate hiring practices.
Allegations of Favoritism
At the heart of the investigation lies the assertion that Kim leveraged his political position to secure a job for his second son at Bithumb. Reports indicate that the lawmaker made requests for his son’s employment between September and November 2024, leading to the son’s hiring in January 2025. The young man reportedly worked at the exchange for approximately six months.
Furthermore, Kim’s role on a committee overseeing financial and virtual asset policies raises questions about whether his inquiries to Dunamu, the operator of the Upbit exchange, were part of a broader scheme to exert pressure on Bithumb. The investigation has expanded to cover 13 separate allegations, including potential bribery related to nominations.
Uncertain Future for Bithumb
Despite being summoned for questioning about seven times over the past nine months, Kim has yet to see the conclusion of this inquiry. Bithumb has maintained that its hiring practices adhered to standard procedures and that no irregularities have been found.
The media has been quick to report on the latest developments, with major broadcasters like MBC, KBS, and JTBC providing coverage of the police raid shortly after it occurred. Bithumb remains a key player in South Korea’s cryptocurrency market, trailing only Upbit, with a reported daily trading volume of approximately $576 million.
This recent raid is not Bithumb’s first encounter with regulatory scrutiny. The exchange has previously faced a range of issues, including tax inspections, fraud-related investigations, and allegations of token manipulation, making it a frequent target for law enforcement and regulatory agencies.
As the investigation unfolds, police have indicated that their work is far from complete. They are still in the process of gathering evidence and have yet to file any charges. The materials collected from the latest raid may prove critical in determining the future trajectory of this case.
Featured image from EPA Images, chart from TradingView
