South Korean prosecutors raid Bithumb headquarters over ₩11.6 billion in executive housing benefits

Prosecutors searched Bithumb’s Seoul headquarters on October 29 as they investigate whether 11.6 billion won ($8.3 million) in company-funded housing benefits for four current and former executives was misused, local outlet Bloomingbit reported. The allegations are unproven, and no charges have been reported.

Prosecutors return to Bithumb over ₩11.6 billion in housing benefits

According to local media reports, Major Crimes Prosecution Division 3 of the Seoul Southern District Prosecutors’ Office began searching Bithumb’s headquarters in Seoul’s Gangnam district on October 29. The operation is intended to examine unresolved questions arising from the earlier investigation into the exchange’s executive housing arrangements.

The central issue is whether company funds designated for residential accommodation were used in accordance with their intended purpose. South Korea’s Financial Supervisory Service (FSS) previously identified housing benefits totaling 11.6 billion won for four current and former executives.

The regulator’s findings raised concerns about the management of housing lease deposits and whether adequate safeguards existed to prevent company resources from being used for personal benefit.

The Bithumb raid is therefore significant beyond the amount involved. Corporate housing arrangements can be legitimate executive compensation, but they require clear authorization, documented business purposes and effective internal controls. Questions about how such benefits were approved and monitored can expose weaknesses in a company’s governance framework.

Prosecutors have not publicly established that the entire amount was misappropriated. The investigation instead concerns allegations of improper use involving some of the housing funds, with further evidence needed to determine individual responsibility.

Earlier investigation focused on former CEO’s apartment

The current investigation follows a search of Bithumb’s offices on March 20, 2025, when prosecutors examined allegations that corporate money had been used to assist former chief executive Kim Dae-sik with an apartment purchase in Seoul’s Seongsu-dong neighborhood. Kim later served as an adviser to the exchange.

Investigators were reportedly examining a 3 billion won lease deposit allegedly provided to Kim in connection with the apartment. The concern was whether funds designated for housing support had instead helped finance a personal property transaction.

The earlier case centered on potential breach of trust involving corporate funds. However, the allegations do not amount to a finding of criminal liability, and the available reporting does not establish that charges have been filed against Kim in connection with the housing arrangement.

The renewed Bithumb raid suggests investigators are seeking to resolve outstanding questions by collecting further documents and evidence. The materials could help establish who approved the payments, what conditions governed the housing benefits and whether the money was used for its stated purpose.

The timing also coincides with a major overhaul of South Korea’s criminal justice system. On October 2, the country replaced its long-standing Prosecutors’ Office with a restructured Prosecution Service and a new Serious Crimes Investigation Agency, separating investigative responsibilities from prosecution functions.

Under transitional provisions, certain investigations already underway may continue for up to 90 days after the reform took effect, subject to specified legal conditions. The legal framework therefore provides a mechanism for some existing cases to be completed during the transition.

Regulatory penalties add to Bithumb’s governance challenges

The housing investigation is unfolding amid wider questions about Bithumb’s compliance systems and executive accountability. South Korean lawmakers have raised concerns about internal controls at cryptocurrency exchanges, including allegations surrounding executive benefits and payments connected to token listings.

Separate anti-money laundering enforcement has also placed the exchange under pressure.

In March 2026, South Korea’s Financial Intelligence Unit imposed a 36.8 billion won fine on Bithumb and ordered a six-month partial business suspension after identifying approximately 6.65 million alleged compliance violations. The findings included deficiencies involving customer identification, transaction restrictions and dealings with unregistered overseas virtual asset service providers.

The suspension was subsequently put on hold by the Seoul Administrative Court in April while Bithumb challenges the regulatory action. The court’s decision temporarily prevented enforcement of the suspension pending the main legal proceedings; it did not erase the underlying findings or resolve the dispute.

The latest Bithumb raid adds another layer to the exchange’s regulatory challenges, although the housing allegations and the anti-money laundering case are separate matters.

For cryptocurrency platforms, these developments highlight the importance of maintaining controls that extend beyond customer transactions. Governance systems must also ensure that executive compensation, property benefits and other corporate expenditures are properly authorized, documented and reviewed.

Investigation raises fresh questions about accountability

The renewed search comes as South Korea continues to strengthen scrutiny of cryptocurrency businesses and their management. For investors and customers, the central issue is whether exchanges can demonstrate that their internal governance standards match the responsibilities associated with handling substantial digital-asset tradingBithumb raid activity.

The Bithumb raid does not establish wrongdoing by the exchange or its executives. Its significance lies in the questions investigators are still attempting to answer about the management of corporate funds and the effectiveness of internal oversight.

Authorities have not publicly detailed the full scope of the October 29 search or announced a final outcome. It remains unclear whether the additional evidence will lead to further investigative steps, formal charges or the closure of the case.

Until investigators clarify those issues, the allegations surrounding executive housing benefits remain unresolved. The outcome could provide a clearer picture of how South Korean authorities assess potential misuse of corporate resources at cryptocurrency exchanges, particularly as the country transitions to a restructured criminal justice system.

For Bithumb, the immediate challenge is navigating the continuing investigation alongside separate regulatory proceedings. The Bithumb raid places corporate governance back in the spotlight, with the next developments likely to depend on what the evidence establishes rather than the scale of the allegations alone.