South Korean prosecutors have searched Bithumb’s Seoul headquarters again as part of an investigation into allegations that former and current executives misused company funds intended for luxury housing. The October 29 raid follows a Financial Supervisory Service finding that Bithumb provided 11.6 billion won in housing benefits to four executives.
What prosecutors are investigating
The Seoul Southern District Public Prosecutors’ Office’s Major Crimes Prosecution Division 3 began searching Bithumb’s Gangnam headquarters on Thursday morning, according to News1 Korea. The probe focuses on whether housing funds provided to executives were diverted for personal use.
The Financial Supervisory Service found that Bithumb gave 11.6 billion won in housing benefits to four former and current executives. It identified suspected irregularities involving housing lease funds and referred the matter to prosecutors.
Prosecutors are collecting documents and evidence to answer questions left open by an earlier investigation. Authorities have not said what action they may take after reviewing the evidence.
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The earlier March 2025 raid
The renewed search comes about 19 months after prosecutors first raided Bithumb’s offices on March 20, 2025. That investigation examined whether corporate money was improperly used to help a former chief executive buy an apartment.
The earlier case involved former Bithumb CEO Kim Dae-sik, who later served as an adviser to the exchange. Investigators examined claims that Bithumb provided a 3 billion won lease deposit connected to an apartment in Seoul’s Seongsu-dong area.
Prosecutors suspected that money intended for residential accommodation may have been used toward the property purchase. The case was handled by the prosecution’s joint virtual asset crime investigation unit, which examined possible breach of trust involving corporate funds.
Why the case is continuing now
South Korea’s criminal justice system changed on October 2, when existing prosecutors’ offices were replaced by a new Public Prosecution Office and a Serious Crimes Investigation Agency. Under the revised system, prosecutors generally no longer conduct direct criminal investigations.
However, transitional provisions allow prosecutors to continue certain cases that were already underway before the restructuring. These arrangements can last up to 90 days, especially when a statute of limitations is approaching or continued work is considered unavoidable.
News1 reported that the latest Bithumb search may have been carried out under that transitional arrangement. Its purpose is reportedly to complete the investigation that began last year and secure materials needed to decide how prosecutors should proceed.
Cases involving alleged financial misconduct at cryptocurrency companies highlight the importance of transparency, accountability, and strong internal controls. Read our guide on whether crypto is safe to better understand the risks users should consider when engaging with digital assets.
Lawmakers question Bithumb controls
Bithumb’s executive-fund practices have also drawn attention from South Korean lawmakers. On October 19, Democratic Party lawmaker Lee Kang-il raised concerns about executive screening and accountability at cryptocurrency trading platforms.
Lee cited Bithumb’s alleged misuse of housing allowances, as well as separate allegations involving payments connected to token listing requests. He also pointed to the exchange’s past anti-money laundering violations as evidence of broader internal-control concerns.
The allegations do not mean Bithumb or its executives have been found guilty. The investigation remains ongoing, and any formal charges would depend on the evidence prosecutors collect and review.
Bithumb’s compliance record
In March 2026, South Korean financial regulators fined Bithumb 36.8 billion won after identifying about 6.65 million violations involving customer identity verification, transaction monitoring and other compliance obligations.
The Financial Intelligence Unit also imposed a six-month partial business suspension that restricted certain external cryptocurrency transfers for new customers. Bithumb challenged the action, and the Seoul Administrative Court suspended enforcement of the penalty in May.
A suspension of enforcement is not the same as overturning the penalty. It temporarily prevents the regulator’s action from taking effect while the legal challenge continues.
Other investigations involving Bithumb
Bithumb has faced separate scrutiny involving its management. In June, South Korean police searched its offices over allegations that a lawmaker used political influence to secure employment for his son at cryptocurrency companies.
That investigation concerned alleged preferential hiring arrangements involving Bithumb and Dunamu, the operator of rival exchange Upbit. The latest raid is separate from that employment-related inquiry.
What happens next
Prosecutors are expected to review the documents and evidence gathered during the October 29 search. They may then decide whether to expand the investigation, seek charges, or close the case without action.
For Bithumb, the renewed probe adds regulatory and reputational pressure at a time when South Korean lawmakers are questioning oversight of crypto exchange executives. The exchange has not been found liable in the housing-funds case, and the investigation’s outcome remains uncertain.
