Bithumb Under Investigation for Embezzlement Allegations Amid IPO Push
South Korean authorities have launched an investigation into the operations of cryptocurrency exchange Bithumb, following allegations that its former CEO embezzled company funds for a personal real estate purchase.
On March 20, prosecutors from Seoul’s Southern District raided the exchange’s offices as part of their inquiry into financial misconduct.
The investigation focuses on claims that the former CEO, Kim Dae-sik, who currently serves as an adviser to the firm, used company funds to cover a 3 billion Korean won (over $2 million) apartment deposit. Authorities are concerned that Kim may have misappropriated funds for personal gain, including the purchase of the apartment.
Bithumb, responding to the allegations, acknowledged that Kim took a loan following an investigation by the Financial Supervisory Service (FSS) and subsequently repaid the funds in question. The exchange insists that the full amount used for the apartment was returned.
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Further rumors have emerged suggesting Bithumb and rival exchange Upbit were involved in charging projects significant intermediary fees for token listings. Anonymous sources claim that these fees ranged from 3% to 5% of the total token supply, with one project allegedly paying $2 million and another $10 million to be listed on Bithumb.
Amid the ongoing investigation, Bithumb is also pushing forward with plans to go public. The company aims to finalize its long-discussed IPO, with CEO Lee Jae-won accelerating efforts to address any judicial risks that may affect major stakeholders. This comes after several setbacks, including a previous fraud case involving former board chairman Lee Jeong-hoon, which was ultimately dismissed by the Supreme Court. Despite challenges, Bithumb remains focused on securing its public listing, which is now expected to occur in 2025, although the exchange’s revenue dropped by 57% in 2023.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
