- The Seoul Southern District Prosecutors’ Office has conducted a search and seizure at Bithumb’s headquarters
- Prosecutors have initiated an investigation into the exchange over allegations of misusing company funds
- It is alleged that the company provided funds to a former CEO for an apartment purchase
The Seoul Southern District Prosecutors’ Office has launched an investigation into cryptocurrency exchange Bithumb, leading to a raid of its Seoul headquarters. Prosecutors allege that company funds were misused to assist a former CEO in purchasing a personal apartment. Following an initial probe by the Financial Supervisory Service (FSS), which uncovered potential financial misconduct, the case was handed over to the prosecution for further examination.
Corporate Funds Used for Personal Apartment
Prosecutors executed a search and seizure operation on March 20 at Bithumb’s headquarters located in Yeoksam-dong, Seoul, following allegations that the company provided financial assistance to its former CEO, now an advisor, identified as Mr. Kim, to facilitate his acquisition of a personal apartment.
Specifically, it is alleged that Bithumb supported Mr. Kim by covering a substantial portion of the deposit for a high-end apartment in Seongsu-dong, Seoul, amounting to over 3 billion won ($2.4 million). Concerns have been raised that these corporate funds, intended for company use, were diverted for personal benefit, constituting a breach of fiduciary duty.
Financial Supervisory Service Involvement
The FSS initiated an investigation after receiving reports of potential financial irregularities within Bithumb, and upon discovering evidence that suggested misuse of company funds, the FSS referred the case to the Seoul Southern District Prosecutors’ Office for a more in-depth criminal investigation. An FSS official stated, “We take any misuse of corporate funds seriously and will continue to monitor and investigate such activities to maintain financial integrity.”
Bithumb has acknowledged the ongoing investigation and has expressed its intention to fully cooperate with the authorities. A spokesperson for Bithumb commented, “We are aware of the investigation concerning our former CEO and are committed to providing all necessary assistance to the authorities to ensure a thorough and transparent inquiry.” The company also emphasized its dedication to upholding corporate governance standards and ensuring that all operations comply with legal and ethical guidelines.
This is not Bithumb’s first brush with the law; in December 2024, another former CEO, Lee Sang-jun, was sentenced to two years in prison for accepting bribes to list specific cryptocurrencies on the exchange, resulting in market manipulation.
