Bithumb CEO Lee Jae-won Named Bribery Suspect in Political Probe

South Korean police named Bithumb CEO Lee Jae-won as a bribery suspect in a political-influence investigation. The probe targets lawmaker Kim Byung-kee. Police are examining whether Kim used his public office to help his son secure jobs at Bithumb and Dunamu, the operator of Upbit. The investigation also looks at whether Kim's position benefited those employers.

Police have not disclosed the alleged bribe amount or its form. Lee has not been charged. He is a suspect. The case adds to a series of political scandals involving crypto firms in South Korea.

Bithumb is one of South Korea's largest crypto exchanges by trading volume. Founded in 2014, it was once the dominant exchange in the country. It has since lost market share to Upbit. The exchange has faced previous regulatory and security challenges. In 2020, its executives were investigated for tax evasion. In 2018, it suffered a major hack that led to the loss of customer funds.

The investigation adds to uncertainty around Bithumb's operations. Traders are watching for any impact on withdrawal processing or exchange solvency. In past exchange scandals, users have rushed to withdraw funds. Bithumb's reserves and liquidity are being closely monitored.