South Korean police have formally booked Lee Jae-won, CEO of Bithumb, the country's second-largest cryptocurrency exchange, as a bribery suspect. The probe centers on an alleged quid pro quo: Lee helped secure a job for the son of sitting lawmaker Kim Byung-kee. In return, Kim reportedly used his seat on the National Assembly's Political Affairs Committee to target Bithumb's biggest competitor, Dunamu — the operator of Upbit, South Korea's largest crypto exchange.
November 2024 Dinner in Mapo: A Job for a Legislative Hit
According to investigators, in November 2024, Representative Kim met Lee at a restaurant in Seoul's Mapo district. During that dinner, Kim allegedly asked Lee directly to hire his son. The request was fulfilled. Soon after, Kim began focusing on what police describe as "pointing out monopoly issues" against Dunamu from the floor of parliament. Police suspect this was not independent oversight but a coordinated arrangement: a job for the son in exchange for using legislative power to go after the competition.
Former Aide Comes Forward; Second Hiring Discovered
The case gained momentum when a former aide to Kim gave police a firsthand account. The aide stated that at the Mapo drinking session in November 2024, Kim solicited the job for his son. As the investigation widened, police found a second hiring: an individual identified as "A," a former Kim staffer, has been employed at Bithumb since September 2025. Investigators are examining whether this second hire was also part of the same arrangement, suggesting the relationship between Bithumb and the lawmaker may have involved multiple favors.
Two Raids on Bithumb's Gangnam Office
Police have raided Bithumb's Gangnam district office twice. The first raid occurred in February 2026, and the second followed on June 8, 2026 — just days before Lee was booked as a suspect. The two searches within four months indicate an investigation that has been steadily escalating, with each raid aimed at gathering further evidence.
Current Status and Industry Fallout
As of June 11, 2026, the case remains under active investigation. Police have booked the CEO, secured witness statements, conducted two office raids, and are examining at least two hirings linked to the lawmaker. Questions remain about whether Kim will face separate charges and whether Dunamu's past regulatory treatment will face renewed scrutiny. The case lands at a sensitive time for South Korea's crypto industry — one of the world's most active markets — and the suggestion that a major exchange sought to shape competition through a sitting lawmaker raises concerns far beyond this single case.