Lee Jae-won, CEO of South Korea's second-largest crypto exchange Bithumb, has been formally registered as a bribery suspect by the Seoul Metropolitan Police Public Crime Investigation Unit. The probe centers on an alleged quid pro quo: hiring the son and a political aide of lawmaker Kim Byung-kee in return for Kim's legislative campaign against Bithumb's biggest rival, Upbit operator Dunamu.
Two-month hiring pipeline for lawmaker's son
According to reports from Yonhap and The Block, in November 2024, Kim Byung-kee — then a member of the National Assembly's Finance Committee — personally asked Lee to find a position for his second son at Bithumb. By January 2025, the son had been hired after passing assessments, working at the exchange for about six months. Kim later pressed Bithumb to hire one of his political assistants, who joined in September 2025 and remains employed.
Tailored legislative attacks on Upbit monopoly
In exchange, Kim used his committee influence to repeatedly question Dunamu's market dominance in parliamentary sessions and public forums. Financial analysts widely viewed these actions as a custom-fit campaign to tilt the fiercely contested crypto market in Bithumb's favor through political intervention.
Police raids lead to formal suspect designation
The investigation, which had been running under the radar for months, saw two large-scale searches and seizures at Bithumb headquarters and related sites. After securing key evidence, police elevated Lee to criminal suspect status. No court verdict has been reached; the case remains under active investigation.
The scandal underscores South Korea's tightening scrutiny of hidden links between crypto exchanges and politicians. Bithumb's compliance reputation may take a heavy hit, potentially triggering regulatory ripple effects. This is a developing story.