- South Korean police have named Bithumb’s CEO as a bribery suspect in a recruitment scandal.
- Rep. Kim is claimed to have raised the difficulty of Doonam’s monopoly after his son secured the job.
- The incident has renewed issues about political affect in South Korea’s cryptocurrency sector.
On June 8, 2026, South Korean police indicted Bithumb’s CEO Lee Jae-won on prices of bribery, and is at present investigating him for accepting a job supply for the son of unbiased lawmaker Kim Byung-ki.
South Korean police title Bithumb CEO as bribery suspect
In response to sources and police particulars, the Seoul Metropolitan Police Company’s Public Crimes Investigation Group formally named President Lee as a suspect on suspicion of bribery in a second search warrant throughout an investigation into allegations that unbiased lawmaker Kim Byung-ki’s second son was given preferential hiring.
In the meantime, in the course of the first search and seizure operation in Bisambu in February, police formally named Rep. Kim as a suspect in a bribery case associated to the alleged preferential hiring of his second son, whereas classifying Rep. Bisambu as a witness because the investigation progressed.
Moreover, investigative authorities are trying into the suspicion that Rep. Kim immediately requested Mr. Bithumb to rent Mr. A, a former aide in his workplace. In response to studies, Bithumb employed Mr. A in September final yr, and authorities are at present trying into the circumstances surrounding his employment as a part of a broader investigation.
How did Rep. Kim allegedly goal the Doonam monopoly challenge for preferential employment?
Police suspect that Rep. Kim used his place on the Nationwide Meeting Political Affairs Committee to spotlight monopoly points involving Dunamu (the operator of Upbit and Bithumb’s principal competitor) in return for preferential hiring by Bithumb CEO.
In response to statements made by former aides to police and the media, Kim met with Bithumb’s CEO at a restaurant in Mapo District in November 2024, drank alcohol, and solicited his second son for a job. One aide reported that Rep. Kim abruptly instructed his group to “assault Doonam,” describing its monopoly as “an entire drawback” and even suggesting it “must be shut down.”
Widespread influence on South Korea’s crypto sector
The continued bribery investigation involving Bithumb CEO and Rep. Kim might enhance regulatory scrutiny and weaken investor confidence in South Korea’s crypto sector. Upbit and Bithumb collectively management practically 93-96% of the home buying and selling quantity, amplifying the systemic affect of suspicion on the general market.
The scandal relies on Bithumb’s operational failure in February 2026, when it mistakenly awarded roughly 620,000 BTC to customers as a consequence of a unit enter error throughout a promotion. The incident led to a 16-17% drop in Bitcoin costs on the platform, led to Congressional hearings, and uncovered critical weaknesses in inner controls, danger administration, and ledger programs.
Consequently, regulators have elevated oversight, mandating close to real-time asset reconciliations each 5 minutes, month-to-month exterior audits, and elevated controls on high-risk trades. Market exercise declined, KRW’s buying and selling quantity sharply declined within the first quarter of 2026, and Bithumb recorded even bigger losses.
Associated: South Korean police examine revenge community funded by digital forex
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