Bithumb CEO arrested as suspect in South Korean bribery scandal

The CEO of Bithumb, one of the largest crypto exchanges in South Korea, is under suspicion of bribery. The Seoul police have booked Lee Jae-won as a suspect after he reportedly helped arrange a job at Bithumb for the son of an independent lawmaker. The investigation is ongoing and involves both the exchange and a member of parliament.

A job in exchange for political favours

According to the South Korean news agency Yonhap, Yonhap reports, the investigation focuses on lawmaker Kim Byung-kee. The police suspect that Kim used his position on the National Assembly’s Political Affairs Committee to benefit Bithumb, and that this was in exchange for the appointment of his second son at the exchange.

Specifically, Kim is said to have used his parliamentary activities to highlight monopoly issues at Dunamu, a competitor of Bithumb. The police see this as a direct quid pro quo for the job his son received at Bithumb. A former aide of Kim has confirmed to the police that Kim and representative Lee met in a restaurant in Mapo, Seoul, in November 2024, where that job was allegedly discussed.

Kim’s staff member also works at Bithumb

The investigation goes beyond just the case involving the lawmaker’s son. The police are also looking into the claim that Kim asked Bithumb to hire a staff member from his office, referred to as A. That staff member has been working at the crypto exchange since September last year.

This is not the first time that major crypto exchanges in South Korea have faced controversy over their relationships with politicians or regulators. The case surrounding Bithumb is now drawing significant attention because it is the CEO himself who has been named as a suspect. The investigation is ongoing, and no charges have been filed at this time.