South Korean Lawmaker Under Fire Over Crypto Exchange Allegations

Kim openly denied all claims, and Bithumb clarified that its hiring was conducted transparently and fairly. Separately, Nasdaq-listed ALT5 Sigma is also under pressure after appointing an auditor whose firm license had expired, adding to the existing filing delays, regulatory issues, and a sharp decline in its share price.

Lawmaker Denies Crypto Exchange Pressure Claims

Kim Byung-kee, the former floor leader of South Korea’s Democratic Party, is facing scrutiny following a media report that alleges he tried to pressure a major cryptocurrency firm while his son was seeking employment in the same industry.

According to a report by Kyunghyang Shinmun, Kim Byung-kee, who sits on the National Assembly’s Political Affairs Committee, allegedly wanted to secure a job for his son at crypto exchange Bithumb. Around the same period, Kim was reportedly raising monopoly-related concerns in the National Assembly about rival exchange Upbit, which is operated by Dunamu.

Kim Byung-kee

The report claims that Kim instructed his staff to “attack Dunamu” after South Korean tech giant Naver agreed in November to acquire the firm in a deal reportedly valued at around $10 billion. The proposed acquisition is still subject to regulatory approval, but critics say Kim’s involvement in oversight of financial institutions raises questions about potential conflicts of interest.

Kim strongly denied any wrongdoing by saying his legislative work is unrelated to his son’s employment. Kyunghyang Shinmun quoted the lawmaker as stating that it was “deeply regrettable” that his activities as a legislator were being linked to his son’s hiring, which he said occurred through an open recruitment process. 

A spokesperson for Bithumb also rejected the allegations, saying the company’s hiring was conducted transparently and fairly, and added that concerns about monopolistic behavior in South Korea’s crypto market have been a longstanding issue for policymakers since at least 2021.

The controversy comes as South Korea tightens its oversight of the digital asset sector. While authorities have stepped up enforcement actions against crypto firms, progress on broader regulatory frameworks is still somewhat uneven. In particular, policymakers are still working on rules governing stablecoins. 

Unlike the United States, which passed comprehensive legislation for payment stablecoins earlier this year, talks between South Korean regulators, banks, and the Bank of Korea stalled in November over the role of banks in issuing won-backed stablecoins. The ruling party is now expected to introduce a revised stablecoin bill in January, after missing a key regulatory deadline.

ALT5 Sigma Faces Scrutiny

Concerns in the crypto sector are not only limited to South Korea. The scrutiny surrounding Nasdaq-listed ALT5 Sigma is also increasing after a report revealed that its newly appointed auditor is currently barred from conducting audits due to an expired firm license. According to the Financial Times, the company replaced its previous auditor earlier this month after failing to file its third-quarter financial results by the required deadline, only to appoint an accounting firm that is not authorized to perform audit work under Texas regulations.

ALT5 Sigma appointed Victor Mokuolu CPA PLLC, a small Texas-based firm whose state filings show its license expired in August and had not been renewed. While the firm’s founder, Victor Mokuolu, renewed his personal CPA license on Aug. 31, the firm itself is still inactive until the licensing process is completed, preventing it from issuing audit opinions or reviews.

The company acknowledged the issue, and told the Financial Times that no audits or reviews of its financial statements will be issued until the firm’s license is reactivated. ALT5 Sigma said the auditor is undergoing a mandatory peer review overseen by the Texas State Board of Accountancy, and completion is expected by the end of January.  The situation now adds to the growing list of compliance and governance concerns for ALT5 Sigma.

Regulatory records pointed out in the report show that Victor Mokuolu CPA PLLC previously faced enforcement actions for missed filing obligations. In 2023, the firm was fined for failing to notify regulators of multiple public company audits, with additional penalties imposed in 2024 for similar violations by both state authorities and the Public Company Accounting Oversight Board.

These issues are compounding pressure on ALT5 Sigma’s stock and listing status. In fact, shares are down more than 74% since the start of 2025, and the company now faces the risk of delisting from Nasdaq after missing the deadline to file its quarterly report for the period ending September.

ALT5 Sigma’s stock price action (Source: CoinCodex)

Governance concerns have also intensified after the resignation of board member David Danziger, which left the company out of compliance with Nasdaq audit committee requirements related to size and accounting expertise.

The situation was further complicated by the company’s relationship with World Liberty Financial, which backs ALT5 Sigma. Eric Trump was expected to join the board as part of that partnership, but was instead limited to an observer role after discussions with Nasdaq. Last month, the company also removed two senior executives due to concerns tied to long-running legal issues.