Bithumb Allegations
An alarming accusation has surfaced regarding Bithumb, a prominent cryptocurrency exchange in South Korea, as a legislator claims the platform employed deceptive strategies to inflate user fees beyond what was initially presented. According to Kim Jae-sup, a lawmaker from the People’s Power Party, Bithumb amassed over 140 billion won (approximately $97.6 million) in additional charges, as reported by The Maeil Business Newspaper.
Fee Discrepancies and User Impact
Based on findings shared by the Financial Supervisory Service, Kim disclosed that between February 2023 and February 2024, Bithumb generated a staggering total of 672.79 billion won in fees. During this time, the company advertised itself as offering the lowest commission rates in South Korea, set at 0.04%. However, Kim pointed out that the actual average fee users faced was 0.051%, leading to substantial extra charges.
One major concern raised by Kim was Bithumb’s failure to adequately inform users about the necessity of registering a coupon to benefit from the advertised rates. He characterized this omission as a classic example of a ‘dark pattern‘—a manipulation technique in user interface design that misleads consumers.
“The adverse effects on middle-aged individuals, who may find it more challenging to navigate this process, can be particularly severe,” Kim remarked.
He has called for heightened oversight from authorities, urging the Financial Services Commission and the Fair Trade Commission to intervene decisively to address such misleading practices.
Bithumb’s Resilient Recovery
Despite the controversy, Bithumb has made a significant recovery, reporting a 265.4% increase in revenue in 2024. The exchange’s financial results indicate an operating profit of 130.7 billion won (around $90.1 million) for the previous year, a remarkable rebound from a loss of 14.8 billion won in 2023. Additionally, its net profit skyrocketed by 565.8%, reaching 161.8 billion won (nearly $111.2 million) in 2024, underscoring a significant turnaround for the platform after a challenging year.
