365Crypto
South Korean Authorities Raid Bithumb Over $2M Scandal
A Raid, a CEO, and a Missing $2 Million
South Korean prosecutors just raided Bithumb, a major crypto exchange. Why? They suspect the former CEO, Kim Dae-sik, misused company funds. Authorities believe he took a $2 million lease deposit from Bithumb and used part of it to buy an apartment.
Seoul’s Southern District Prosecutors’ Office led the investigation, searching Bithumb’s offices on March 20. Officials worry this might be part of a bigger financial misconduct case.
Bithumb Says the Money Was Paid Back
The Financial Supervisory Service (FSS) had already investigated the case. After its findings, Bithumb confirmed that some allegations were true.
A company representative told The Chosun Daily that Kim took a loan right after the FSS probe. He then fully repaid the money he used for the apartment.
But that’s not the only issue. There are rumors that crypto projects paid big fees to get their tokens listed on Bithumb.
$10 Million Just to Get Listed?
Wu Blockchain, a crypto news source, reports that some projects paid millions to get listed.
- One project allegedly paid $2 million.
- Another paid a shocking $10 million.
- Some fees were 3–5% of total token supplies.
Wu Blockchain claims these fees were tied to Upbit’s shareholders and market makers.
Upbit Wants Proof
Upbit, another big crypto exchange, isn’t happy about these claims. The company demanded evidence of any illegal listing fees.
They’ve asked Wu Blockchain to reveal the names of projects that paid for listings. They also want concrete proof of these brokerage fees.
Bithumb’s IPO Dream & Legal Battles
This investigation comes while Bithumb is trying to go public. The company has been pushing for an initial public offering (IPO) for years.
- In 2021, its former chairman faced fraud charges.
- In 2023, Bithumb picked an underwriter for its IPO.
- In 2024, the company started a new business branch to speed up the stock market debut.
The IPO could still happen in 2025, but this scandal could slow things down. Plus, Bithumb reported a 57% drop in revenue last year.
