South Korea Police Raid Bithumb Over Kim Byung-gi Nepotism Hiring Probe

South Korean police raided Bithumb as part of an investigation into alleged nepotism involving independent lawmaker Kim Byung-gi, with the probe focusing on claims that he tried to influence employment opportunities for his son at multiple crypto firms including Bithumb and Dunamu.

“Police investigating various corruption allegations involving independent lawmaker Kim Byung-kee (former floor leader of the Democratic Party of Korea) have again raided Bithumb, the virtual asset exchange where Kim's second son worked”

Chosunbiz

The search and seizure was conducted at Bithumb’s headquarters in Gangnam-gu, Seoul, according to local media reports published on Monday, and the Seoul Metropolitan Police Agency’s Public Crime Investigation Unit executed a search and seizure warrant at Bithumb’s office on June 8.

Chosunbiz

Local outlet News1 reported the latest operation marked the second raid connected to the hiring case, following an earlier search in February.

Investigators are reviewing whether personnel decisions at Bithumb were affected by outside pressure or preferential treatment, and police had already secured employment-related documents during the earlier raid.

Police have reportedly questioned Kim several times as they continue investigating whether any criminal conduct occurred in connection with the alleged misuse of his political position.

Chosunbiz said Kim was under suspicion of seeking job favors between September and November 2024 from Bithumb and Dunamu, and that his second son joined Bithumb in January last year and worked there for six months.

Cointelegraph

Chosunbiz also reported that police were continuing their investigation into 13 corruption allegations involving Kim, including the alleged receipt of nomination bribes, and that through April Kim was summoned for questioning seven times.

During his sixth appearance before investigators, Kim stated that he believed he would be cleared of wrongdoing, while authorities continued to examine whether any criminal conduct had occurred.

The hiring probe is unfolding alongside Bithumb’s separate regulatory troubles, including a $24.5 million fine and a six-month partial suspension order issued in March by financial regulators after inspections in 2025.

“South Korean police have reportedly raided Bithumb as part of an investigation into alleged nepotism involving independent lawmaker Kim Byung-gi”

Cryptonews.net

Cointelegraph reported that the enforcement action stemmed from findings of Know Your Customer (KYC) and AML shortcomings and included restrictions on certain services, particularly related to onboarding new users, as part of the broader penalty package.

In late April, a South Korean court temporarily blocked the implementation of that suspension order after Bithumb challenged the regulator’s decision, pausing enforcement while legal proceedings continue.

Cointelegraph also said authorities have not announced whether further summonses are planned for Kim or exchange officials, while investigators continued gathering testimony in April by questioning additional individuals connected to Bithumb.