South Korea police raid Bithumb over lawmaker hiring favoritism probe: report

South Korean police have reportedly raided Bithumb as part of an investigation into alleged nepotism involving independent lawmaker Kim Byung-gi.Kim allegedly attempted to influence employment opportunities for his son at multiple crypto firms, including Bithumb and Dunamu, the operator of rival exchange Upbit, according to a Monday report by News1.Kim’s son joined Bithumb in January 2025 and worked there for about six months, the local outlet reported. Authorities are investigating whether any external pressure or preferential treatment influenced the hiring process. Hiring favoritism and influence-peddling allegations remain politically sensitive issues in South Korea, where a series of high-profile scandals involving politicians and conglomerates, particularly in hiring and admissions, have fueled public scrutiny over abuse of power and insider networks.Probe widens beyond Bithumb hiring allegationsPolice have reportedly questioned Kim several times as they continue investigating whether any criminal conduct occurred in connection with the alleged misuse of his political position.The allegations widened after reports revealed that Kim, while serving on the National Assembly’s Political Affairs Committee overseeing the nation's finance regulator, repeatedly directed questions at Dunamu during proceedings, raising questions over whether he was attempting to support the company where his son was working.Bithumb is one of South Korea's largest exchanges. Source: BithumbPolice previously called executives from crypto exchanges in for questioning as witnesses in February, and earlier carried out a separate search and seizure at Bithumb’s headquarters and Bithumb Financial Tower.Related: South Korea police probe Polymarket users over illegal gambling claims: ReportInvestigators continued gathering testimony in April by questioning additional individuals connected to Bithumb.Kim was also questioned in April over 13 separate allegations, including claims tied to nomination bribery, employment-related favors involving his son and alleged requests connected to a university transfer. Authorities have not announced whether further summonses are planned. During his sixth appearance before investigators, Kim said he was confident he would be cleared of wrongdoing.Bithumb under regulatory watchBithumb has faced regulatory scrutiny in South Korea over Anti-Money Laundering (AML) and compliance deficiencies, including a $24.5 million fine and a six-month partial suspension order issued in March by financial regulators following inspections in 2025.The enforcement action stemmed from findings of Know Your Customer (KYC) and AML shortcomings and included restrictions on certain services, particularly related to onboarding new users, as part of the broader penalty package.In late April, a South Korean court temporarily blocked the implementation of that suspension order after Bithumb challenged the regulator’s decision, pausing enforcement while legal proceedings continue. Cointelegraph reached out to Bithumb for comment but did not receive a response by publication.Asia Express: North Korea denies crypto hacks, Upbit’s bank tests RippleCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.