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Bithumb, one of South Korea’s leading cryptocurrency exchanges, has come under scrutiny for allegedly using deceptive practices to charge users higher fees than advertised. According to data presented by South Korean lawmaker Kim Jae-sup, the company earned over 140 billion won (approximately $97.6 million) in additional fees through unclear processes that misled users.

Bithumb’s Fee Discrepancy: What Happened?

Between February 2023 and February 2024, Bithumb reportedly collected a total of 672.79 billion won in fees. Despite advertising a “lowest commission in Korea” rate of 0.04%, the actual average commission charged to users was 0.051%. This discrepancy resulted in consumers paying approximately 140.91 billion won more than expected, according to Kim Jae-sup, a member of the People’s Power Party.

Kim pointed out that the advertised minimum fee rate of 0.04% was only accessible to users who registered for a special coupon. However, many users were not adequately informed of this requirement, leading to higher charges. Such practices, Kim suggested, align with what is known as a dark pattern—a deliberate design strategy used to manipulate users into taking actions they might not fully understand.

Impact on Middle-Aged and Older Users

Kim also emphasized that middle-aged and older users were disproportionately affected by these practices. “The damage to the middle-aged who may have difficulty recognizing or carrying out the coupon registration process is even more serious,” he stated. This highlights a broader issue of accessibility and transparency in the cryptocurrency space, where less tech-savvy individuals may face additional hurdles.

Calls for Regulatory Intervention

The lawmaker urged South Korea’s Financial Services Commission and Fair Trade Commission to take action against such deceptive practices. By implementing stricter regulations, authorities could help ensure greater transparency and consumer protection in the cryptocurrency industry, which continues to attract millions of new investors.

Bithumb’s Financial Turnaround

Despite the controversy, Bithumb has seen a significant financial recovery. According to data from the Financial Supervisory Service’s electronic disclosure system, the exchange posted an operating profit of 130.7 billion won (approximately $90.1 million) in 2024. This marks a dramatic turnaround from the 14.8 billion won operating loss recorded in 2023. Additionally, Bithumb’s net profit for 2024 surged 565.8% year-over-year to 161.8 billion won (nearly $111.2 million), reflecting a robust recovery in its overall operations.

Key Takeaways for Crypto Investors

For cryptocurrency enthusiasts and investors, this situation serves as a reminder to carefully review fee structures and terms of service when using exchanges. Here are a few tips to avoid unexpected charges:

  • Read the fine print: Always review the terms and conditions, especially regarding fees and commissions.
  • Check for hidden requirements: Look for any additional steps, such as coupon registration, to access advertised discounts.
  • Stay informed: Follow updates from regulators and industry watchdogs to stay ahead of potential deceptive practices.
  • Compare platforms: Research multiple exchanges to find one that offers transparent and competitive fee structures.

As the cryptocurrency market continues to grow, ensuring transparency and fairness will be critical for building trust among investors. Regulatory oversight, coupled with informed decision-making by users, can help create a safer and more equitable environment for all participants.

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