South Korean Police Investigate Bithumb Over Preferential Hiring Allegations

South Korean authorities have launched an investigation into cryptocurrency exchange Bithumb over allegations of preferential hiring practices. The probe is centered around claims that independent lawmaker Kim Byung-gi used his political influence to secure employment for his son at cryptocurrency companies, including Bithumb and Dunamu.

Bithumb's offices were searched as part of the investigation, which has raised concerns about the use of political influence in hiring decisions. Authorities are examining whether the recruitment process involved outside pressure or preferential treatment connected to Kim's position.

The investigation is a significant development for Bithumb, which is already facing regulatory challenges. The exchange is contesting a $24.6 million Anti-Money Laundering (AML) penalty imposed by the Financial Intelligence Unit in March. While new users were temporarily restricted from depositing or withdrawing external crypto assets, the suspension was paused after Bithumb obtained a stay of execution in May.