Bithumb, South Korea’s second-largest cryptocurrency exchange by trading volume, is reportedly seeking to reassign CEO Lee Jae-won despite recent alleged anti-money laundering failures and other controversies, according to The Korea Times.
The exchange will hold its regular shareholders’ meeting on March 31, and Lee’s appointment to the top post will be proposed to shareholders, The Korea Times reported. Reported on Sunday, citing industry sources.
His current term expires at the end of the month, and a successful renewal would keep Lee on as CEO of the exchange for another two years. Cointelegraph has contacted Bithumb for comment.
Upbit is South Korea’s top crypto exchange by 24-hour trading volume. According to Up to CoinGecko, followed by Bithumb and Korbit.
Regulators hit Bithumb with fines
In March, South Korea’s Financial Intelligence Unit issued Bithumb a six-month partial suspension and a 36.8 billion won ($24.2 million) fine for alleged anti-money laundering failures.
Under the measures, exchanges will be banned from processing external crypto transfers for new customers from March 27 to September 26.
The exchange also drew regulatory attention in February when it mistakenly credited 2,000 Bitcoin (BTC) per user instead of 2,000 Korean won ($1.40) during a promotional event, giving out a total of 620,000 coins it couldn’t back up.
According to The Korea Times, Bithumb is also awaiting the results of another investigation into its order book sharing with overseas platforms and further fines could hinder license renewal.
“Bthumb is awaiting the outcome of an ongoing regulatory investigation, as the company still needs to renew its virtual asset service provider license,” an industry official told The Korea Times.
Related: South Korea Moves to Limit Crypto Exchange Shareholder Shares to 20 Percent: Report
South Korea’s crypto industry is growing.
The crypto industry in South Korea has benefited from a friendly environment since the election of President Lee Jae-myung in June last year, who has pushed through various crypto-related laws, including a bill to legalize stablecoins.
Three months ago, the number of crypto exchange users in South Korea surpassed 16 million, representing more than 30% of the country’s population.
The cryptocurrency market in South Korea is expected to reach $1.3 billion in 2026. According to On the online data platform Statista.
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