Bithumb CEO investigated for alleged bribery in South Korean crypto listing

The chief executive officer of Bithumb’s holding company, Lee Sang-jun, is under investigation by South Korean prosecutors for alleged bribery in listing certain cryptocurrencies on the exchange.

The Seoul Southern District Prosecutors’ Office confirmed the investigation, which includes a raid on Bithumb Holdings and Lee’s private residence earlier this month.

Prosecutors also revealed that a former employee of Coinone, the country’s third-largest crypto exchange by trade volume, is being investigated for allegedly taking bribes to list specific cryptocurrencies.

The investigation adds to the growing list of charges against Bithumb executives. A South Korean court is set to hold the first trial for Bithumb’s de-facto owner Kang Jong-hyun, who faces charges of embezzlement, fraudulent transactions, and breach of duty.

Meanwhile, Kang’s younger sister, who holds the largest stake in Bithumb, faces charges of manipulating the exchange’s stock price with false information.

South Korea is developing a regulatory framework for the digital asset industry, which is expected to include clearer guidelines for listing and delisting crypto tokens on exchanges.