Bithumb, the country’s second-largest crypto exchange by trading volume, is reportedly seeking to reappoint CEO Lee Jae-won despite recent controversies, including alleged anti-money laundering shortcomings, according to The Korea Times.
The exchange is set to hold its annual shareholders’ meeting on March 31, where a proposal to retain Lee as CEO will be presented, the report said, citing industry sources.
Lee’s current term expires at the end of the month, and if approved, his reappointment would extend his leadership for another two years. Cointelegraph has reached out to Bithumb for comment.
According to CoinGecko data, Upbit remains the country’s largest crypto exchange by 24-hour trading volume, followed by Bithumb and Korbit.
Regulators penalize Bithumb
In March, South Korea’s Financial Intelligence Unit reportedly imposed a six-month partial suspension on Bithumb along with a fine of 36.8 billion won ($24.2 million) over alleged anti-money laundering failures.
As part of the sanctions, the exchange will be barred from handling external crypto transfers for new users between March 27 and Sept. 26.
Bithumb also faced scrutiny in February after mistakenly crediting users with 2,000 Bitcoin instead of 2,000 Korean won (around $1.40) during a promotional campaign—resulting in the distribution of roughly 620,000 BTC that the platform could not support.
The exchange is additionally under investigation for alleged order book sharing with an overseas platform. According to The Korea Times, further penalties could complicate its efforts to renew its virtual asset service provider license.
“Bithumb will be on edge awaiting the results of ongoing regulatory probes, as the company still needs to renew its virtual asset service provider license,” an industry official told the outlet.
South Korea’s crypto market grows
Despite regulatory challenges, South Korea’s crypto sector has been expanding, supported by a more favorable policy environment under Lee Jae-myung, who has promoted crypto-related legislation, including efforts to legalize stablecoins.
Earlier last year, the number of crypto exchange users in the country surpassed 16 million—more than 30% of the population.
According to Statista, South Korea’s cryptocurrency market is projected to generate $1.3 billion in revenue by 2026.
