Bithumb’s Former CEO Accused of Embezzlement—Prosecutors Raid HQ

Early investigations point to Kim Dae Sik, the former Bithumb CEO turned advisor, as having allegedly misused corporate funds for personal gain. The exchange had initially allocated him a $2 million deposit to secure a rental property, but suspicions arose that part of the amount was instead used to finance a personal home purchase.

The case gained momentum after an internal review detected financial inconsistencies, prompting legal authorities to step in. During the raid, investigators seized documents tracking financial flows, including transaction logs related to the deposit, as well as records that might establish a direct link between company funds and the executive’s private assets.

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The controversy puts the financial oversight of Bithumb under scrutiny, especially as South Korean regulators increase their focus on crypto market transparency. While the platform admitted that its former CEO had engaged in misconduct, it also assured that he had reimbursed all company-issued funds.

Some concerns proved to be valid: after a Financial Supervisory Service (FSS) audit, advisor Kim obtained a loan from a credit institution and repaid the entire sum used for his apartment purchase,

Bithumb representatives confirmed.

The Aftermath and Lingering Concerns

The crypto community remains divided over the implications of Bithumb’s ongoing controversies. The exchange has already been at the center of various investigations, including tax fraud allegations and claims of market price manipulation. These recent developments have only fueled skepticism about its governance and internal transparency.

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Meanwhile, journalist Wu Blockchain, relying on anonymous sources, claimed that Bithumb and Upbit allegedly solicited payments for token listings. His report states that two projects paid $2 million and $10 million to be listed. The exchanges dismissed the claims, demanding concrete evidence and the names of the alleged victims, but Wu refused, citing source protection.

Some projects also indicated that they provided an intermediary fee ranging from 3% to 5% of the total token amount, and eventually managed to get listed on Upbit successfully. However, not all projects paid the intermediary fees. Among the seven projects that WuBlockchain reached out to, three stated that they didn't pay any intermediary fees,

Wu Blockchain stated.

Both analysts and the broader crypto community believe that scandals of this nature could trigger stricter regulatory oversight on the movement of funds in the crypto space. If the claims are substantiated, Bithumb’s executives and the exchange as a whole could face serious legal, financial, and investor repercussions. 

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