Bithumb offices searched by authorities in South Korean lawmaker nepotism investigation
Independent South Korean parliamentarian Kim Byung-gi under investigation for suspected favoritism in securing cryptocurrency industry positions for his son, prompting police search of Bithumb.
Authorities in South Korea have conducted a raid on Bithumb's facilities as they pursue an inquiry into suspected favoritism involving independent parliamentarian Kim Byung-gi, according to reports.
The lawmaker reportedly sought to secure job opportunities for his son across several cryptocurrency companies, including both Bithumb and Dunamu, which operates the competing platform Upbit, News1 reported on Monday.
According to the domestic news source, Kim's son was employed at Bithumb beginning in January 2025, remaining with the company for approximately six months. Investigators are examining whether the recruitment process was affected by external influence or preferential consideration.
Employment favoritism and political influence allegations continue to be highly charged issues in South Korea's political landscape, where multiple prominent controversies involving elected officials and major corporations, especially concerning recruitment and educational admissions, have intensified public examination of power abuse and privileged networks.
Probe widens beyond Bithumb hiring allegations
Authorities have reportedly interviewed Kim on multiple occasions as their investigation continues into potential criminal activity related to the suspected abuse of his legislative authority.
The scope of the allegations expanded following revelations that Kim, during his tenure on the National Assembly's Political Affairs Committee which provides oversight for the country's financial regulatory authority, posed numerous questions directed at Dunamu during official hearings, prompting concerns about whether he was trying to benefit the firm employing his son.
Law enforcement officials had previously summoned cryptocurrency exchange executives for witness testimony in February, and conducted another separate search operation at both Bithumb's main headquarters and the Bithumb Financial Tower facility.
The investigation team proceeded to collect additional testimony in April through interviews with more individuals associated with Bithumb.
Kim also faced questioning in April regarding 13 distinct allegations, including accusations related to nomination-related bribery, employment favors concerning his son, and purported requests associated with facilitating a university transfer.
Law enforcement agencies have not disclosed whether additional summonses will be issued. When appearing before investigators for the sixth time, Kim expressed his belief that he would be exonerated of any misconduct.
Bithumb under regulatory watch
Bithumb has encountered regulatory oversight in South Korea concerning deficiencies in Anti-Money Laundering (AML) and compliance protocols, including a $24.5 million monetary penalty and a six-month partial business suspension directive announced in March by financial authorities following audits conducted in 2025.
The regulatory enforcement resulted from discoveries of inadequate Know Your Customer (KYC) and AML practices and encompassed limitations on specific operations, especially those involving the registration of new customers, as components of the comprehensive penalty measures.
Toward the end of April, a South Korean judicial authority temporarily halted the execution of that suspension directive after Bithumb contested the regulator's ruling, suspending enforcement during ongoing legal processes.
Cointelegraph reached out to Bithumb for comment but did not receive a response by publication.