Bithumb earned millions through dark pattern tactics, South Korean lawmaker says

A South Korean lawmaker accused Bithumb of using dark patterns to charge users higher fees than advertised. Cryptocurrency exchange Bithumb earned more than 140 billion won (nearly $97.6 million) in extra fees by using unclear processes that misled users, The Maeil Business Newspaper reports , citing a South Korean lawmaker. Kim Jae-sup, a member of the People’s Power party, revealed that Bithumb earned 672.79 billion won in total fees between February 2023 and February 2024, referring to data submitted by the Financial Supervisory Service. During the period, Bithumb advertised a “lowest commission in Korea” of 0.04%. In reality, however, the average commission rate charged to actual users was 0.051%, Kim added. As a result, consumers faced an additional fee of about 140.91 billion won, the lawmaker emphasized. You might also like: Crypto exchange Bithumb to spin off investment arm ahead of potential Nasdaq listing Kim explained that Bithumb failed to properly notify users that they needed to register a coupon to receive the minimum fee rate. The South Korean lawmaker suggested that such a practice seems to be a typical dark pattern , a deceptive scheme where a user interface is carefully crafted to trick users into doing things they didn’t mean to. The lawmaker also highlighted that the extra fee burden was heavier on older users. “The damage to the middle-aged who may have difficulty recognizing or carrying out the coupon registration process is even more serious,” Kim said. The lawmaker urged regulators to step in, saying the Financial Services Commission and the Fair Trade Commission should take strong action to stop this kind of consumer deception. Bithumb successfully returned to profitability in 2024, with revenue increasing by 265.4% year-over-year. Per data from the Financial Supervisory Service’s electronic disclosure system, Bithumb posted an operating profit of 130.7 billion won (around $90.1 million) last year, marking a turnaround from losses as the exchange had recorded an operating loss of 14.8 billion won in 2023. Net profit for 2024 surged 565.8% year-over-year to 161.8 billion won (nearly $111.2 million). Read more: Crypto exchnage Bithumb alerts customers following data breach at Korea’s largest carrier