South Korean cryptocurrency exchange Bithumb has had its offices raided by authorities amid investigations into the allegedly suspicious crypto activities of its former CEO and lawmaker, Kim Nam-kuk.
It’s yet another major legal drama for the exchange, which has been embroiled in several troubling controversies in recent years.Allegations
As per local media reports, both Bithumb and Upbit offices were raided for transaction records and other data relating to Kim’s holdings.
In May 2024, it was reported that Kim had embezzled funds from the exchange. More specifically, prosecutors allege that Bithumb provided him with 3 billion Korean won (approx $2 million), some of which were leveraged for the apartment.
Furthermore, the former lawmaker was allegedly involved in suspicious crypto movements, cashing out millions in crypto he had reportedly received from Bithumb ahead of Korea’s crypto “Travel Rule.”Notably, he has backed legislation that has, for a few years, deferred South Korea’s proposed 20% tax on crypto gains.
These allegations also led to Kim resigning from his political party in 2023.