South Korean prosecutors have reportedly launched an investigation into cryptocurrency exchange Bithumb, focusing on allegations that company funds were misused to assist its former CEO, Kim Dae-sik, in acquiring an apartment.
Bithumb’s Headquarters Raided
According to a report by Korean news channel YTN, the Seoul Southern District Prosecutor’s Office conducted a raid on Bithumb’s office in Yeoksam-dong. The investigation is examining claims that Bithumb provided Kim with financial support for purchasing an apartment in Seoul’s Seongsu-dong district.
A source close to the probe stated that Bithumb allegedly gave Kim a lease deposit of 3 billion won (approximately $2.4 million), which may have been used for his personal property acquisition. Kim, who currently serves as an advisor to the company, has not publicly commented on the matter.
Investigation Ongoing, No Charges Yet
As of now, prosecutors have not issued any official statements regarding the specifics of the raid, as the investigation is still in its early stages. It remains unclear whether formal charges will be filed against Kim or any other Bithumb officials.
Bithumb’s IPO Plans
This development comes as Bithumb is actively pursuing an initial public offering (IPO) on the Nasdaq stock exchange in the United States. The company previously announced its IPO ambitions in September 2024, with Samsung Securities acting as the lead underwriter. The listing is targeted for the second half of 2025.
While Bithumb’s regulatory troubles could pose challenges to its IPO plans, the outcome of the investigation will determine whether the company faces further legal hurdles. The exchange has yet to release an official statement addressing the allegations.
