Bithumb CEO Jailed and Fined Over Bribery Scheme in Token Listing Process

Lee Sang-jun, the former CEO of Bithumb, South Korea‘s largest cryptocurrency exchange, has been sentenced to two years in prison and fined 52 million won ($35,367) for his involvement in a bribery scheme that manipulated the platform’s token listing process. The Seoul Southern District Court concluded that Lee had accepted cash and luxury items in exchange for facilitating the listing of certain tokens on the exchange.

The bribery scheme was orchestrated by businessman Kang Jong-hyun, who provided a total of 3 billion won ($2 million) in cash and luxury goods worth over $272,000, including designer watches, bags, and exclusive restaurant memberships. This exchange of wealth was designed to secure a token listing on Bithumb. As a result, Kang was sentenced to one year and six months in prison for breach of trust.

Ahn Sung-hyun, a former professional golfer, played the role of intermediary between Lee and Kang. Ahn facilitated the transfer of bribes, but he was found to have deceived Kang by keeping a significant portion of the bribes intended for Lee. Ahn received the longest sentence of the three, amounting to four years and six months in prison.

While dealing with the fallout from the scandal, Bithumb is also facing significant challenges in its business strategy. The company has been considering a potential listing on the U.S. Nasdaq exchange, shifting its focus away from the South Korean stock market. This decision may be a response to South Koreas strict regulatory stance on cryptocurrencies, which has complicated efforts to launch or trade cryptocurrency exchange-traded products (ETPs) on the Kosdaq, the South Korean equivalent of the Nasdaq.

Bithumb initially planned an initial public offering (IPO) on the Kosdaq in the second half of 2025. The company had appointed Samsung Securities as its underwriter for this potential listing. However, the ongoing scrutiny surrounding the company, especially due to the involvement of former chairman Lee Jeong-hoon, has prompted Bithumb to reconsider its IPO strategy. Additionally, recent regulations introduced by South Koreas Financial Services Commission now require crypto firm executives to obtain regulatory approval before assuming their positions.

Bithumb‘s IPO plans were seen as a major step in expanding the company’s market presence. As one of the first South Korean cryptocurrency exchanges to pursue such a listing, it was expected to mark a significant moment for the local crypto industry. The company, which holds assets worth over 400 billion won (approximately $300 million), aims to restore public trust after facing government scrutiny, including a raid on its offices last year.

With the recent legal actions against its former executives and the regulatory hurdles it now faces, Bithumbs future is uncertain.