Bithumb raid deepens South Korea nepotism probe

South Korean police have reportedly raided crypto exchange Bithumb as part of an expanding investigation into allegations that independent lawmaker Kim Byung-gi used his political influence to secure employment opportunities for his son at cryptocurrency firms.

The investigation centres on claims that Kim sought to influence hiring decisions at both Bithumb and Dunamu, the operator of Upbit, with authorities examining whether his son received preferential treatment when he joined Bithumb in January 2025 and remained there for around six months.

Police have questioned Kim multiple times and are assessing whether any criminal conduct occurred in connection with the alleged misuse of his position as a member of the National Assembly.

The probe widened after reports indicated that Kim repeatedly directed questions towards Dunamu while serving on the National Assembly’s Political Affairs Committee, which oversees South Korea’s financial regulator, prompting scrutiny over potential conflicts of interest linked to his son's employment.

Investigators also questioned additional individuals connected to Bithumb in April, while Kim faced questioning over 13 separate allegations ranging from nomination bribery claims to employment-related favours and requests tied to a university transfer, though he has maintained he expects to be cleared of wrongdoing.

The case has attracted attention in South Korea, where allegations of hiring favouritism and influence-peddling involving politicians and major corporations have repeatedly sparked public controversy and intensified scrutiny of insider networks.

Bithumb is separately facing regulatory pressure after South Korean authorities imposed sanctions over alleged anti-money laundering and know-your-customer compliance failures, although a court temporarily suspended enforcement of a six-month partial business restriction order in April while the exchange challenges the decision through legal proceedings.