Skip to content
- Bithumb raided over alleged misuse of funds for ex-CEO’s $2.4M property purchase.
- The probe focuses on a 3 billion won lease deposit tied to a luxury apartment acquisition.
- The investigation could impact Bithumb’s Nasdaq IPO plans amid regulatory scrutiny.
South Korean prosecutors conducted an operation in Bithumb, one of the country’s largest cryptocurrency exchanges. The allegations involve the misuse of these corporate resources through the purchase of an expensive apartment in Seoul for its former chief executive officer, Kim Dae-sik.
YTN, a Korean news channel reported that the Seoul Southen District Prosecutor’s Office conducted the raid at Bithumb’s office located in Yeoksam-dong. Investigations involving the charges stated that when Kim worked for the exchange and became its advisor, the company offered him a lease deposit of 3 billion won, equivalent to $2.4 million. This sum is believed to have been embezzled for his private use to purchase an apartment in the posh Seongsu-dong.
Currently, no statement from the prosecutor’s office gives detailed information on the raid. The case is still in a preliminary stage, meaning that the definite charges to be laid on Kim or any other executive of Bithumb are yet to be determined.
Bithumb’s Nasdaq IPO Plans
The raid took place at a critical moment when Bithumb was interested in listing on the Nasdaq stock market in the US. In September 2024, it was disclosed that the exchange plans for an IPO in the second half of 2025, and Samsung Securities will be the underwriters. During the recent shareholders meeting, the IPO plans were announced more than anything else underlining the focus of Bithumb on global expansion.
Nevertheless, the authorities continue working on the case, which may affect Bithumb’s decision to go to IPO. This may raise questions on the form of corporate governance and financial transparency that may reduce investors’ confidence. Cryptocurrencies overall in the period of focusing on regulation as well as increasing demand for ethical financial practices.
The crypto community and investors are keenly observing this move. The prosecutor’s further reports will shed light on the possible consequences for Bithumb and its management. This investigation may have implications for the future of the exchange both in South Korean markets as well as internationally.
