South Korea’s leading crypto exchange Bithumb, is reportedly moving forward with plans to renew the term of its CEO, Lee Jae-won, despite mounting regulatory scrutiny and recent operational controversies.
According to a report by The Korea Times, the exchange is set to hold its regular shareholders’ meeting on March 31, where a proposal to extend Lee’s tenure will be put to a vote.
His current term is scheduled to expire at the end of this month, and approval would grant him another two-year term.
The decision comes at a challenging time for Bithumb, which has faced multiple setbacks in recent months. The platform was recently penalized by the Financial Intelligence Unit (FIU) under the Financial Services Commission for violations related to anti-money laundering (AML) compliance.
The sanctions included a six-month partial suspension of operations, a fine of 36.8 billion won (approximately $24 million), and disciplinary measures against key officials, including a formal reprimand for Lee.
In addition to regulatory penalties, the exchange has been under scrutiny following an erroneous Bitcoin distribution incident, which has triggered a separate investigation by the Financial Supervisory Service (FSS).
Authorities are also reviewing Bithumb’s alleged order book sharing with an overseas platform, further intensifying regulatory pressure.
Despite these challenges, Bithumb appears to be prioritizing leadership stability over restructuring. Industry observers suggest that retaining Lee could help ensure operational continuity as the company navigates ongoing legal and compliance issues.
Notably, cryptocurrency exchanges in South Korea are not legally classified as financial institutions, allowing executives to remain in their roles even after receiving regulatory reprimands.
However, such disciplinary actions are still considered serious and could impact investor confidence.
If reappointed, Lee will face the task of steering Bithumb through heightened regulatory oversight while addressing compliance gaps and restoring market trust.
