Bithumb, South Korea’s second-largest crypto exchange by trading volume, is moving to reappoint CEO Lee Jae-won despite recent regulatory and operational controversies, the Korea Times reports. The exchange’s regular shareholders’ meeting is scheduled for March 31, where a bid to extend Lee’s term for another two years will be voted on; his current term ends at month’s close. Cointelegraph has contacted Bithumb for comment.
Regulators have recently penalized Bithumb for alleged anti-money laundering (AML) shortcomings. In March, South Korea’s Financial Intelligence Unit imposed a six-month partial suspension and fined the exchange 36.8 billion won (about $24.2 million). As part of the measures, Bithumb is barred from processing external crypto transfers for new customers from March 27 through Sept. 26.
The exchange also faced scrutiny after a February promotional error that mistakenly credited users with 2,000 Bitcoin (BTC) each instead of 2,000 Korean won (~$1.40), resulting in the erroneous distribution of roughly 620,000 BTC that Bithumb could not back up. The company is also under investigation for sharing its order book with an overseas platform; further penalties from ongoing probes could complicate its virtual asset service provider license renewal.
Industry sources told the Korea Times that Bithumb will be closely watching the outcomes of these investigations, noting the license renewal is still required. South Korea’s crypto market remains active: Upbit ranks first by 24-hour trading volume, followed by Bithumb and Korbit (per CoinGecko). The sector has benefited from a more favorable regulatory environment since President Lee Jae-myung’s election, which has advanced crypto-related legislation including a bill to legalize stablecoins.
Crypto adoption in South Korea is high—exchange users topped 16 million late last year, representing over 30% of the population—and market revenue is projected to reach $1.3 billion in 2026, according to Statista.