Prosecutors in South Korea have launched an investigation into Bithumb, one of the country's largest cryptocurrency exchanges, over claims that company funds were improperly used to assist a former executive in purchasing an apartment.

Officials from the Seoul Southern District Prosecutors’ Office raided Bithumb’s headquarters in Yeoksam-dong and other locations on Wednesday., according to local media report.

Wu Blockchain reported that some projects had paid up to $10 million in fees to list their tokens on Upbit and Bithumb.

The probe focuses on allegations that Bithumb provided a 3 billion KRW ($2 million) security deposit for an apartment rental in Seongsu-dong, Seoul, for Kim Dae-sik, the company’s former CEO and current advisor.

The Financial Supervisory Service, South Korea’s financial regulator, initially reviewed the case before forwarding it to prosecutors. Speaking to The Chosun Daily, a Bithumb spokesperson reportedly acknowledged some of the allegations were correct, adding Kim repaid the loaned amount in its entire after securing a loan.

Bithumb has faced multiple legal challenges in recent years, including tax probes and a raid related to a price manipulation probe. Its latest challenge comes as the firm was reported to be considering listing shares on the Nasdaq.

Bithumb was not immediately available for comment when contacted by CoinDesk.

Disclaimer: Information gathered for this article was translated with the use of artificial intelligence. UPDATE (March 20, 12:33 UTC): Adds additional details and background.

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