South Korean authorities raided Bithumb’s headquarters over allegations that its former CEO misused company funds. Prosecutors suspect that Kim Dae-sik, a former CEO and current advisor at Bithumb, may have used company money to finance a personal real estate purchase.
On March 20, prosecutors from the Seoul Southern District Prosecutor’s Office searched Bithumb’s offices in Yeoksam-dong. The investigation focuses on allegations that a company lease deposit of 3 billion Korean won (approximately $2.4 million) was given to Kim. Authorities suspect that some of these funds may have been used to buy an apartment in Seoul’s Seongsu-dong area.
According to local reports, South Korea’s Financial Supervisory Service (FSS) had previously looked into the case and forwarded its findings to prosecutors. Authorities are now reviewing the details to determine whether any financial misconduct took place.
Bithumb States Funds Were Repaid
A Bithumb representative told The Chosun Daily that the allegations contain elements of truth but added that Kim repaid the funds in full. The company stated that after the FSS investigation, Kim secured a loan from a lender and used it to return the money to the company.
Prosecutors have not yet confirmed whether charges will be filed against Kim or other Bithumb officials. As of now, no official statements have been released by the prosecutor’s office regarding the outcome of the raid.
Allegations of Listing Fees Also Surface
Alongside the investigation into the lease deposit, there are separate reports suggesting that cryptocurrency projects may have paid intermediaries to secure token listings on Bithumb and Upbit.
The report claims that intermediaries connected to Upbit’s shareholders and market makers facilitated these deals. It also states that some listing fees were structured as a percentage of the total token supply, ranging from 3% to 5%. Bithumb has not made any official statements regarding these allegations.
Investigation Comes Amid Bithumb’s IPO Plans
The ongoing investigation occurs as Bithumb moves forward with plans for an initial public offering (IPO). On March 18, Business Post reported that Bithumb’s current CEO, Lee Jae-won, is accelerating efforts to take the company public.
Bithumb has been working on an IPO since 2020 but has faced multiple setbacks. In 2023, it appointed an underwriter, and in 2024, it established a non-exchange business to support its stock market debut. Despite these efforts, the company reported a 57% decline in annual revenue for 2023.
Authorities have not provided a timeline for the investigation’s next steps.
