- Bithumb is currently under investigation in South Korea for allegedly misusing company funds to help its former CEO, Kim Dae-sik, secure an apartment in Seoul.
- The investigation may likely impact Bithumb’s IPO plans, as the exchange aims to list on Nasdaq Mid 2025.
Bithumb is currently being investigated in South Korea for allegedly misusing the company funds to help its former CEO buy an apartment.
A local news reported on the 20th of March, that the South Korean prosecutors have launched an investigation into Bithumb over claims that company money was misused to help the former CEO Kim Dae-sik, now an advisor, secure an apartment in Seongsu-dong, Seoul.
Some officials from the Seoul Southern District Prosecutors’ Office stormed Bithumb’s headquarters in Yeoksam-dong on March 20 as part of the investigations. Reports suggest that the exchange provided 3 billion Korean won (about $2.4 million) for Dae-aik as a deposit for his lease, some of this fund was used for Kim’s personal property purchase. The Financial Supervisory Service first reviewed this case before handing it over to prosecutors for further action.
As of the time of writing, the exchange has not yet released any official statements about the raid, as the investigations are still in their early stages, and it is unclear if Kim or any other executives of the exchange will face charges. However, a Bithumb spokesperson told The Chosun Daily (a local news outlet) that some of the claims were true and that Kim fully repaid the borrowed money after getting a loan.
Bithumb Legal Charges and IPO Ambitions
Bithumb has faced several legal issues in the past few years, including investigations by South Korean tax authorities and a raid that was linked to a price manipulation case. Simultaneously, in September 2024, Bithumb planned to go public on the Nasdaq stock exchange in the U.S. The aim of the exchange was to complete the listing in the second half of 2025.
With prosecutors looking into the case, it raises concerns about transparency in the country’s crypto industry. This investigation could likely affect the exchange’s plans to go public and lead to more strict regulations for crypto exchanges nationwide.
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