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Bithumb CEO Suspected of Bribery in Political Appointment Probe

South Korean police see Bithumb executive Lee Jae-won as a suspect in a bribery case tied to political appointments. Here’s how the hires and possible influence are connected.

By Mike Hesp
• 2 min read
Bithumb CEO Suspected of Bribery in Political Appointment Probe

Key Takeaways

  • Bithumb CEO Lee Jae-won has been named a suspect by police in a bribery probe tied to political appointments.
  • Politician Kim Byung-kee is said to have asked for hires at Bithumb, including his second son and a staff member.
  • Police suspect Kim used his position to take action against Dunamu, the company behind rival Upbit.

The CEO of South Korean crypto exchange Bithumb, Lee Jae-won, has been named a suspect by police in a bribery investigation tied to political appointments. The case centers on the hiring of the son of Kim Byung-kee, an independent member of South Korea’s National Assembly.

Investigation Into Political Influence

According to police reports, lawmaker Kim asked Lee in November 2024 to hire his second son at Bithumb. He was actually hired two months later and worked at the exchange for six months. In addition, one of Kim’s staff members was also reportedly hired at Bithumb after a request from the politician.

Police suspect Kim, who was a member of the Financial Affairs Committee, used his position to push legislative action against Dunamu, the company behind Upbit, a direct rival to Bithumb. That included calling out possible market monopolies by Upbit.

Context in South Korea’s Crypto Market

Bithumb has been one of South Korea’s biggest crypto exchanges since 2014, while Upbit, launched in 2017, has quickly gained ground and holds a significant market share. In recent years, the South Korean government has tightened regulation of the crypto sector to improve transparency and crack down on illegal activity.

The case highlights how sensitive political interference in business matters can be in South Korea, where similar allegations have previously led to legal action. At the same time, the country’s crypto market is dealing with security challenges, and Upbit has also faced major thefts.

Why This Matters for the European Crypto Market

These developments may matter to European crypto readers because they offer a look at how complex regulation and political influence can be in major Asian crypto markets. The case also shows why transparency and integrity in the relationship between politics and crypto companies are getting more attention in Europe too.

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