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Photo Credit: Bithumb |
[Alpha Biz= Paul Lee] A former executive at the domestic cryptocurrency exchange Bithumb, who had previously served as its CEO, is reported to have misused the company's housing allowance to pay for the remaining balance on an apartment he personally purchased. Bithumb has announced that it will conduct a thorough investigation into the company's housing allowance system.
Bithumb stated on Tuesday, "We operate the housing allowance system to improve employee welfare and retain key personnel." They also mentioned, "Following the Financial Supervisory Service's (FSS) inquiry, we are conducting a comprehensive review of the housing allowance system and will strengthen our internal management and supervision."
The company continued, "This issue is currently under investigation, and we will make a sincere explanation." Bithumb added, "In addition to reviewing the housing allowance system, we will reassess other internal policies from the perspective of strengthening internal controls. We will particularly examine areas where conflicts of interest may arise and ensure strict scrutiny in their operation."
Bithumb also promised to strengthen controls to prevent employee misconduct, including expanding the whistleblower rewards system for unfair trading involving employees to the entire business process.
According to the FSS, in December 2023, Bithumb's current advisor, a former executive who previously served as CEO, falsely reported that Bithumb had rented an apartment for use as a company residence and paid a deposit of 1.1 billion KRW. The executive used this deposit to pay the balance on the apartment he had personally purchased and then leased the apartment to a third party for 2.8 billion KRW without providing it as company housing.
The FSS explained that this executive had served as CEO for several years after the company's founding and is currently serving as an advisor with the title of President. Additionally, another current executive in June of last year unilaterally decided to provide a high-value company residence (with a deposit of 3 billion KRW) for his personal use, creating a potential conflict of interest.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
