- South Korean police named Bithumb’s CEO a bribery suspect in a job solicitation case.
- Lawmaker Kim allegedly raised Dunamu monopoly issues after his son secured a job.
- The case has renewed concerns about political influence in South Korea’s crypto sector.
On June 8, 2026, South Korean police booked Bithumb chief executive officer (CEO) Lee Jae-won as a bribery suspect and are currently investigating him on charges of accepting a job request for the son of independent lawmaker Kim Byung-ki.
South Korea Police Name Bithumb CEO As a Bribery Suspect
According to sources and police details, the Seoul Metropolitan Police Agency’s Public Crime Investigation Unit has formally named CEO Lee as a suspect in bribery charges in the second search warrant in an ongoing investigation into the alleged preferential hiring of independent lawmaker Kim Byung-ki’s second son.
Meanwhile, during the first search and seizure operation at Bithumb in February, police formally named Rep. Kim as a suspect in a bribery case linked to alleged preferential hiring for his second son, while classifying Bithumb as a witness as the investigation progressed.
In addition, investigators are examining allegations that Rep. Kim directly requested Bithumb to hire “A,” a former aide from his office. Reports indicate that Bithumb employed A in September last year, and authorities are now reviewing the circumstances surrounding the hiring as part of the wider probe.
How Rep. Kim Allegedly Targeted Dunamu Monopoly Issues for Job Favor
The police suspect that Rep. Kim leveraged his position on the National Assembly’s Political Affairs Committee to highlight monopoly issues involving Dunamu (operator of Upbit and Bithumb’s main competitor) as a quid pro quo for the hiring favors extended by the Bithumb CEO.
According to former aides’ statements to police and media, Kim met Bithumb CEO in November 2024 at a Mapo-district restaurant, had a drinking session, and solicited employment for his second son. One aide reported that Rep. Kim suddenly directed the team to “attack Dunamu,” describing its monopoly as “a complete problem” and even suggesting it “should be shut down.”
Broader Impact on South Korea’s Crypto Sector
The ongoing bribery investigation involving Bithumb CEO and Rep. Kim could intensify regulatory scrutiny and weaken investor confidence in South Korea’s crypto sector. Upbit and Bithumb collectively dominate nearly 93–96% of domestic trading volume, amplifying the systemic impact of the allegations across the market.
The scandal builds on Bithumb’s February 2026 operational failure, when a unit input error during a promotion mistakenly credited users with about 620,000 BTC. The incident triggered a 16–17% Bitcoin price drop on the platform, led to parliamentary hearings, and exposed serious weaknesses in internal controls, risk management, and ledger systems.
As a result, regulators have tightened oversight, mandating near real-time asset reconciliation every five minutes, monthly external audits, and stronger controls on high-risk transactions. Market activity has declined, with KRW trading volumes falling sharply in Q1 2026 and Bithumb recording deeper losses.
Related: South Korea Police Probe Crypto-Funded Revenge-for-Hire Network
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