Bithumb Seeks CEO Reappointment Approval Amid Fines, Probes

Bithumb, South Korea's second-largest cryptocurrency exchange by trading volume, plans to seek shareholder approval on March 31 to reappoint CEO Lee Jaewon for another two-year term, despite a series of regulatory penalties and ongoing investigations into compliance failures.

The proposal comes as Lee's current term expires at the end of March. If approved, it would allow him to remain in the role amid heightened scrutiny from authorities. Bithumb, which trails only Upbit in daily trading volume according to market data, has faced significant challenges that have tested its internal controls and adherence to rules for virtual asset service providers.

In March, South Korea's Financial Intelligence Unit imposed a record 36.8 billion won ($24 million) fine on Bithumb for antimoney laundering violations identified during an inspection. The penalties also include a six-month partial suspension, effective from March 27 to September 26, that prohibits new customers from making external cryptocurrency transfers. The unit issued a reprimand to Lee and a six-month suspension to the exchange's reporting officer. These measures stem from over 6.59 million instances of noncompliance with...