Bribery Investigation of Bithumb CEO
In a significant development in an ongoing bribery investigation, South Korean authorities have escalated their inquiry into Lee Jae-won, the CEO of cryptocurrency exchange Bithumb, officially designating him as a suspect. The Seoul Metropolitan Police Agency initiated this probe, which focuses on claims that Lee facilitated preferential hiring for the son of independent lawmaker Kim Byung-ki, as well as for one of Kim’s aides, both of whom are alleged to have benefited from connections with the Bithumb chief.
Allegations and Evidence
Allegations suggest that Lee was approached by Rep. Kim regarding the employment of his second son, leading to his son’s hiring at Bithumb in January 2025 for approximately six months. The situation intensified after law enforcement received testimonies indicating that a meeting took place between Lee and Kim at a restaurant in Mapo, Seoul, in November 2024, where the job request supposedly originated.
Evidence has emerged that may suggest Kim, who was a member of the National Assembly’s Political Affairs Committee, might have engaged in legislative maneuvers that favored Bithumb in return for his son’s position within the company. Investigators are looking into claims that Kim directed legislative initiatives aimed at restricting Bithumb’s main competitor, Dunamu, particularly concerning monopolistic conduct in the market.
Coercive Tactics and Investigative Actions
In addition, authorities are probing potential coercive tactics used by Kim to influence Bithumb’s hiring decisions. An aide of the lawmaker, known only as “A,” is said to have been hired by Bithumb in September of the previous year, raising questions about whether these hires were part of a broader scheme of reciprocal advantage.
Recent investigative actions taken by the police include a second raid at Bithumb’s Gangnam headquarters, commissioned on June 8, which followed an earlier search in February where Rep. Kim was named as a principal suspect. His legal troubles are compounded with a larger investigation into various corruption-related allegations, comprising accusations of receiving illegal payments and personal misuse of corporate funds.
Bithumb’s Response
Bithumb has publicly asserted its innocence, claiming its recruitment practices were legitimate and adhered to legal standards. The firm has also clarified that the advisory position of the former aide was informal and unconnected to the employment issues regarding Kim’s son.
Moving forward, police plan to interrogate the involved parties including the aide and any other individuals associated with the controversial hiring practices, to ascertain their knowledge and involvement regarding the job solicitation processes that have come under scrutiny.
