Bithumb Raid: Former CEO's $2M Embezzlement Probe
South Korean prosecutors conducted a raid on major cryptocurrency exchange Bithumb on March 20, 2025, investigating allegations of embezzlement against its former CEO, Kim Dae-sik. The investigation centers around a ₩3 billion (over $2 million USD) apartment lease deposit allegedly provided to Kim, who now serves as an advisor to the company.
Allegations of Misconduct
Prosecutors suspect Kim may have misused these funds to purchase a personal apartment, raising concerns about potential financial misconduct within Bithumb. The Seoul Southern District Prosecutors Office led the raid, following an earlier investigation by the Financial Supervisory Service (FSS).
Bithumb's Response
Bithumb acknowledged the allegations in a statement to The Chosun Daily, confirming that Kim initially received the funds but subsequently repaid the full amount after securing a loan following the FSS investigation. The exchange maintains that the matter has been resolved.
IPO Push Under Scrutiny
This investigation casts a shadow on Bithumb's ongoing efforts to go public. CEO Lee Jae-won is reportedly expediting the initial public offering (IPO) process, aiming to finalize it in 2025. The company has undertaken restructuring to mitigate judicial risks associated with previous shareholder issues. Past attempts to go public have been delayed due to various challenges, including a 57% drop in annual revenue in 2023 and prior legal issues involving former board members.
Codeum's Role in Blockchain Security
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