Bithumb is said to be under investigation by South Korean prosecutors for allegedly using corporate funds to facilitate the former CEO’s apartment purchase.
Authorities in South Korea have reportedly conducted a raid on the headquarters of cryptocurrency exchange Bithumb amid claims that the company’s resources were misused to aid its former CEO in acquiring an apartment.
Local news outlet YTN reported that the Seoul Southern District Prosecutor’s Office executed the raid at Bithumb’s offices located in Yeoksam-dong. This investigation is focused on allegations that Bithumb may have provided financial assistance to former CEO Kim Dae-sik, who now serves as an advisor, for the purchase of property in the Seongsu-dong district of Seoul.
An individual close to the investigation informed YTN that Bithumb reportedly granted Kim a lease deposit of 30 billion won (approximately $20.4 million) for the apartment, which could have been redirected for his personal property acquisition.
At the time of writing, there has been no official communication from the prosecutor’s office regarding the specifics of the raid, as the investigation is still in its preliminary phases. It remains uncertain whether any charges will be brought against Kim or other officials within Bithumb.
In September 2024, it was reported that Bithumb is planning to initiate an initial public offering on the Nasdaq stock exchange in the United States, with hopes of a listing in the latter half of 2025. During a meeting with shareholders, the company is said to have confirmed this intention, noting that it is actively engaging in the IPO process with Samsung Securities serving as the lead underwriter.