South Korean Prosecutors Raid Bithumb Over Housing Funds

South Korean prosecutors have raided cryptocurrency exchange Bithumb's headquarters in Seoul as part of an ongoing investigation into allegations that former and current executives misused company funds allocated for luxury housing, according to CryptoNews.

The investigation stems from findings by the Financial Supervisory Service that Bithumb provided 11.6 billion won in housing benefits to four former and current executives, with investigators examining whether portions of the money were diverted for personal use. The Seoul Southern District Public Prosecutors' Office, led by prosecutor Kim Yong-je, conducted the search at the exchange's headquarters in Seoul's Gangnam district.

Prior Investigations and Regulatory Scrutiny

The operation follows an earlier raid conducted in March 2025 regarding the exchange's handling of executive housing funds. Investigators previously examined whether corporate money was improperly used to help former chief executive Kim Dae-sik purchase an apartment, including a 3 billion won lease deposit connected to a property in Seoul's Seongsu-dong neighborhood.

The renewed search comes following recent changes to South Korea's criminal justice system that took effect on October 2. Under transitional provisions, prosecutors are permitted to continue certain existing investigations for up to 90 days after the restructuring.

Parliamentary Attention and Compliance Issues

Bithumb's internal controls have faced additional scrutiny from South Korean lawmakers. During parliamentary discussions in October, Democratic Party lawmaker Lee Kang-il raised concerns regarding executive eligibility screening, token listing payments, and anti-money laundering compliance.

In March 2026, South Korean financial regulators fined Bithumb 36.8 billion won after identifying approximately 6.65 million violations involving customer identity verification and transaction monitoring. The exchange subsequently challenged the regulatory action in court.

Key facts

• South Korean prosecutors raided Bithumb's headquarters in Seoul on October 29.
• The investigation involves 11.6 billion won in housing benefits provided to four former and current executives.
• The probe follows findings initially disclosed by the Financial Supervisory Service in March 2025.
• Lawmakers have also scrutinized the exchange's internal controls and compliance obligations.