Bithumb earns $97 mil. in extra fees despite claiming 'lowest fees' in ad
A Bithumb lounge in Seocho, Seoul / Yonhap
Korea's leading crypto exchange, Bithumb, netted over 140 billion won ($97 million) in extra fees despite stating it offers the “lowest trading fees” in Korea, a ruling party lawmaker said Monday.
The exchange is under suspicion that it deliberately did not inform users about the need to register and redeem a coupon to be charged the lowest rate possible.
Users aged 50 and older were the most impacted, with this group of investors paying almost double the fees of their younger, more tech-savvy counterparts.
According to data submitted by the Financial Supervisory Service to Rep. Kim Jae-sub of the ruling People Power Party, Bithumb made over 140.91 billion won in extra fees from February 2023 to February 2024.
This amount is part of the total 672.7 billion won in trading fees collected during the same period.
The lawmaker said Bithumb's advertisement claimed a trading fee of 0.04 percent, the lowest in the country.
However, the actual rate charged averaged 0.051 percent.
The difference of 0.011 percentage points was a result of Bithumb’s deliberate failure to inform users about how to redeem coupons online, he said.
Exchange users aged 60 and older paid the highest rate of 0.078 percent, followed by those in the 50-59 age group who were charged 0.076 percent.
The figures are far higher than the 0.044 percent charged to users aged 20 and younger.
“The entire process of signing in and trading failed to inform users about the use of coupons,” he said.
This is, he added, a clear example of a dark pattern, also known as a "deceptive design pattern."
This term refers to a user interface designed to manipulate users into actions they may not intend, such as purchasing overpriced insurance or signing up for recurring charges.
“The older generations were affected most. Bithumb must provide a clearer and more user-friendly guidebook on coupon usage,” he said.
“Financial Services Commission and the Fair Trade Commission must also outline measures to prevent similar cases of this sort."