South Korean police have reportedly raided Bithumb as a part of an investigation into alleged nepotism involving unbiased lawmaker Kim Byung-gi.
Kim allegedly tried to affect employment alternatives for his son at a number of crypto corporations, together with Bithumb and Dunamu, the operator of rival alternate Upbit, based on a Monday report by News1.
Kim’s son joined Bithumb in January 2025 and labored there for about six months, the native outlet reported. Authorities are investigating whether or not any exterior strain or preferential remedy influenced the hiring course of.
Hiring favoritism and influence-peddling allegations stay politically delicate points in South Korea, the place a sequence of high-profile scandals involving politicians and conglomerates, significantly in hiring and admissions, have fueled public scrutiny over abuse of energy and insider networks.
Probe widens past Bithumb hiring allegations
Police have reportedly questioned Kim a number of instances as they proceed investigating whether or not any prison conduct occurred in reference to the alleged misuse of his political place.
The allegations widened after studies revealed that Kim, whereas serving on the Nationwide Meeting’s Political Affairs Committee overseeing the nation’s finance regulator, repeatedly directed questions at Dunamu throughout proceedings, elevating questions over whether or not he was trying to assist the corporate the place his son was working.
Bithumb is certainly one of South Korea’s largest exchanges. Supply: Bithumb
Police beforehand referred to as executives from crypto exchanges in for questioning as witnesses in February, and earlier carried out a separate search and seizure at Bithumb’s headquarters and Bithumb Monetary Tower.
Associated: South Korea police probe Polymarket customers over unlawful playing claims: Report
Investigators continued gathering testimony in April by questioning extra people related to Bithumb.
Kim was additionally questioned in April over 13 separate allegations, together with claims tied to nomination bribery, employment-related favors involving his son and alleged requests related to a college switch.
Authorities haven’t introduced whether or not additional summonses are deliberate. Throughout his sixth look earlier than investigators, Kim mentioned he was assured he can be cleared of wrongdoing.
Bithumb underneath regulatory watch
Bithumb has confronted regulatory scrutiny in South Korea over Anti-Cash Laundering (AML) and compliance deficiencies, together with a $24.5 million superb and a six-month partial suspension order issued in March by monetary regulators following inspections in 2025.
The enforcement motion stemmed from findings of Know Your Buyer (KYC) and AML shortcomings and included restrictions on sure providers, significantly associated to onboarding new customers, as a part of the broader penalty package deal.
In late April, a South Korean courtroom quickly blocked the implementation of that suspension order after Bithumb challenged the regulator’s resolution, pausing enforcement whereas authorized proceedings proceed.
Cointelegraph reached out to Bithumb for remark however didn’t obtain a response by publication.
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