Crypto Exchange Bithumb Raided as Prosecutors Dig Into CEO’s Alleged Spending

• Bithumb’s former CEO is also a former politician who resigned over suspicious crypto dealings.
• Bithumb has been raided several times since 2018 over allegations relating to gambling, fraud, and market manipulation.
• The exchange is aiming to launch an IPO on the U.S. Nasdaq in 2025.

South Korean cryptocurrency exchange Bithumb has had its offices raided by authorities amid investigations into the allegedly suspicious crypto activities of its former CEO and lawmaker, Kim Nam-kuk.

It’s yet another major legal drama for the exchange, which has been embroiled in several troubling controversies in recent years.

Allegations

As per local media reports, both Bithumb and Upbit offices were raided for transaction records and other data relating to Kim’s holdings.

In May 2024, it was reported that Kim had embezzled funds from the exchange. More specifically, prosecutors allege that Bithumb provided him with 3 billion Korean won (approx $2 million), some of which were leveraged for the apartment.

Furthermore, the former lawmaker was allegedly involved in suspicious crypto movements , cashing out millions in crypto he had reportedly received from Bithumb ahead of Korea’s crypto “Travel Rule.”

Notably, he has backed legislation that has, for a few years , deferred South Korea’s proposed 20% tax on crypto gains.

These allegations also led to Kim resigning from his political party in 2023.

Bithumb Raids

Over the years, the exchange has been embroiled in several scandals dating back to 2018 that have resulted in its offices and headquarters being raided by authorities.

Since 2020, these raids have been linked to accusations of fraud, illicit fund transfers, and market manipulation . No conclusions have been reported for any of these cases, suggesting they are either underreported or ongoing.

Bithumb is one of South Korea’s largest crypto exchanges, and the results of these investigations may shock the nation’s digital assets industry and dampen recent efforts to regulate crypto for institutional partners.

The exchange is also gearing up for its initial public offering (IPO) on the U.S. exchange Nasdaq. Bithumb hopes to go public by mid-2025.