Prosecutors in Seoul raided the headquarters of South Korean cryptocurrency exchange Bithumb on Thursday morning as part of an investigation into whether former and current executives misused company funds set aside for housing.

The search was carried out by Major Crimes Prosecution Division 3 of the Seoul prosecutors' office. According to the initial report, the probe concerns approximately 11.6 billion won — roughly $8 million at prevailing exchange rates — tied to housing funds used by the exchange's executives. Search-and-seizure operations of this kind are a standard early step in prosecutor-led cases in South Korea, with seized documents and records typically reviewed before any decision on summonses or indictments.

Bithumb, founded in 2014 and headquartered in Seoul, ranks among South Korea's largest cryptocurrency exchanges by trading volume — a scale that makes enforcement activity involving the company notable across the broader domestic sector. The platform and its leadership have previously drawn law-enforcement and regulatory scrutiny, reflecting the heightened oversight applied to digital-asset operators in South Korea, one of the world's most active cryptocurrency markets.

Since 2021, virtual asset service providers in South Korea have been required to register with the Korea Financial Intelligence Unit under the broader oversight of the country's financial authorities, a framework that also conditions exchange banking on real-name verified accounts and information-security certification. Exchanges have repeatedly been examined over compliance and fund-handling practices, and the Bithumb probe centers on corporate fund management rather than trading activity, according to the initial report.

Further details about Thursday's raid, including whether any individuals will face charges, were not included in the initial report. Under standard procedure, any such decision would follow the prosecution's review of the materials gathered during the search, and no timeline has been indicated.

This article was first published on COINOTAG: https://en.coinotag.com/seoul-prosecutors-raid-bithumb-hq-11-6-billion-won-housing-probe