Nikolas Sargeant
South Korea's second-largest crypto exchange Bithumb is reportedly pushing to reappoint CEO Lee Jae-won at its shareholder meeting on March 31, despite a string of recent regulatory penalties and controversies that have put the exchange under significant scrutiny.
Lee's current term expires at the end of the month, and a successful vote would extend his tenure by two more years. The Korea Times reported the reappointment proposal, citing industry sources, with Cointelegraph reaching out to Bithumb for comment.
The timing is fraught. South Korea's Financial Intelligence Unit reportedly handed Bithumb a six-month partial suspension and a 36.8 billion won ($24.2 million) fine in March over alleged anti-money laundering failures. Under the suspension, the exchange is barred from processing external crypto transfers for new customers between March 27 and September 26. Separately, in February, a promotional error saw Bithumb mistakenly credit 2,000 Bitcoin per user instead of 2,000 Korean won, distributing a total of 620,000 BTC it had no ability to back up.
The exchange is also under investigation for allegedly sharing its order book with an overseas platform. Industry observers note that additional penalties from that probe could complicate Bithumb's upcoming virtual asset service provider license renewal, a process the exchange cannot afford to stumble on.
The developments come against a broadly improving backdrop for South Korea's crypto industry. President Lee Jae-myung, elected last June, has championed crypto-friendly legislation including a stablecoin legalization bill, and exchange user numbers have surpassed 16 million, over 30% of the country's population. South Korea's crypto market is projected to generate $1.3 billion in revenue in 2026.
