Bithumb’s Ownership Under Fresh Scrutiny as South Korean Lawmakers and Regulators Intensify Probe

Bithumb’s Ownership Under Fresh Scrutiny as South Korean Lawmakers and Regulators Intensify Probe

South Korean cryptocurrency exchange Bithumb faces renewed investigations by legislators and financial authorities regarding its complex ownership structure as it pushes for an initial public offering (IPO). According to a report by Newspim, during an October 24 National Assembly Political Affairs Committee meeting, lawmakers pressed the Financial Services Commission (FSC) to conduct a thorough inquiry into Bithumb’s ownership transparency.

The ownership of Bithumb has long been contentious. Central to the issue is Kang Jong-hyun, a figure believed to control three firms with minority stakes in Bithumb and alleged to be its “true owner.” Kang is currently facing legal charges for embezzlement and price manipulation tied to altcoin listings on Bithumb. He is also connected to Vidente, a stock market-listed company holding a 34.22% stake in Bithumb Holdings.

Meanwhile, former CEO Lee Jung-hoon, who reportedly maintains control over Bithumb Holdings via various minority shareholdings, is the largest stakeholder, with a 10% direct stake. Lee’s control is further complicated by ongoing legal battles stemming from a failed sale of Bithumb to the BK cosmetic surgery group. Lawmakers have raised concerns that some of Bithumb’s major shareholders are facing fraud and embezzlement charges, with several cases already highlighted in last year’s National Assembly audit.

During the assembly meeting, People Power Party representative Kwon Seong-dong called on the FSC to address the ownership concerns more proactively, referencing major shareholders’ involvement in legal disputes. In response, FSC Chairman Kim Byung-hwan acknowledged the FSC’s limited authority in the matter but noted that the commission is taking steps to address the regulatory gaps.