South Korean Police Investigate Bithumb CEO Over Hiring Allegation

TLDR

• South Korean police name Bithumb CEO Lee Jae-won as a bribery suspect
• Investigation links alleged hiring decision to political influence claims
• Probe centers on meeting in Seoul and the post-meeting job appointment timeline
• Authorities also examine advisory hire linked to earlier staffing decisions
• Case adds to ongoing regulatory actions and fines against Bithumb

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South Korean police have named Bithumb CEO Lee Jae-won as a bribery suspect in an ongoing formal case probe. Authorities examine claims that he influenced hiring decisions involving a lawmaker’s son in a Seoul political favor allegations case. The case adds to multiple regulatory and legal issues already facing the exchange this year, including the ongoing case.

Bribery Investigation Focuses on Hiring Allegations

Police from the Seoul Metropolitan Agency opened a formal probe into Lee Jae-won today case. Investigators allege he used his position to favor a job applicant linked to a lawmaker’s case political influence inquiry.

The hiring reportedly followed a meeting at a restaurant in the Mapo district in November. Officials believe the decision occurred within two months after the private discussion of the case’s internal review.

A former aide provided information that triggered renewed scrutiny of the appointment process case. Police review communications between parties to confirm whether influence was applied in the case document check.

Authorities also examine whether committee roles affected oversight of the rival exchange Dunamu case. They assess possible links between hiring and political leverage within the financial regulation case probe.

Investigators also reviewed a separate advisory hire made in the September 2025 case. That appointment is being checked for possible connection to the current allegations case records review.

Lee has not issued a detailed public statement regarding the allegations. Bithumb continues to cooperate with investigators as the inquiry proceeds.

The police unit stated the investigation remains active and ongoing case. Further evidence collection continues across related offices and the communication records case.

Bithumb CEO Legal Pressure Builds as Cases Stack

Bithumb faces several regulatory actions that have intensified since the early 2026 case. In March, regulators imposed a $24.2 million fine for a compliance failure case penalty.

The Financial Intelligence Unit also issued a six-month partial suspension order. Bithumb appealed the measure, which remains temporarily blocked by the court review case process.

Earlier, a system error led to about 620,000 Bitcoin being sent incorrectly case. The exchange corrected the issue within 35 minutes after the detection case response.

The incident raised concerns about internal controls and system reliability standards. Regulators responded by tightening oversight requirements across local exchanges’ case framework.

Previous leadership at Bithumb also faced legal penalties in earlier cases. A former CEO received a two-year prison sentence over a bribery case ruling.

Upbit leadership changes followed separate compliance enforcement actions in the 2025 case. Lee Sirgoo stepped down after regulatory scrutiny of the anti-money laundering systems case.

South Korea continues to review crypto exchange governance frameworks for the reform case. Lawmakers consider updates that may classify exchanges under financial institution rules.

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