- Bithumb’s CEO under investigation for alleged bribery in cryptocurrency listing.
- Former Coinone employee also being probed for accepting bribes.
- Latest developments add to mounting legal and regulatory challenges for Bithumb.
South Korean authorities have launched an investigation into Lee Sang-jun, CEO of Bithumb’s holding company, over allegations of bribery related to the listing of particular cryptocurrencies on the exchange.
The Seoul Southern District Prosecutors’ Office has confirmed that they are probing the matter, which has raised concerns over potential corruption in the cryptocurrency industry. Lee is suspected of accepting bribes in exchange for listing certain digital assets on Bithumb, one of South Korea’s largest cryptocurrency exchanges.
The Seoul Southern District Prosecutors’ Office has not provided any additional information regarding the ongoing investigation, such as the timing of the alleged raid or Lee’s current location.
However, this is not the first time that Bithumb and its executives have come under scrutiny from South Korean authorities. The exchange has faced a string of legal and regulatory challenges in recent years, including a 2018 police raid on its headquarters over allegations of fraud and embezzlement.
The latest allegations against Bithumb executives have only added to the mounting pressure on the exchange, which has been struggling to regain its footing in the wake of the 2018 hack and other setbacks.
In addition to the investigation of Lee Sang-jun, prosecutors have also revealed that a former employee of Coinone, South Korea’s third-largest cryptocurrency exchange by trading volume, is under investigation for allegedly accepting bribes.
However, the prosecutors have not disclosed the individual’s full name, citing South Korean privacy laws. This development underscores the government’s determination to root out corruption and misconduct in the country’s rapidly growing cryptocurrency sector.
The news also highlights the potential risks that investors face in a largely unregulated industry, where the lack of oversight can make it easier for bad actors to engage in illegal activities.