Bithumb’s Profit Soars Amid Regulatory Scrutiny for Deceptive Fee Practices in South Korea

South Korean cryptocurrency exchange Bithumb has reported a dramatic financial recovery in 2024, with net profit surging by 565.8% to approximately $111.2 million and revenue up 265.4% year-over-year. This turnaround follows a loss in 2023 and is attributed to recovered crypto markets and improved investor sentiment. However, Bithumb is facing increasing regulatory scrutiny after lawmaker Kim Jae-sup accused the platform of misleading users with ’dark pattern’ tactics related to exchange fees. From February 2023 to February 2024, Bithumb allegedly earned over 140 billion won (about $97.6 million) in extra fees by promoting a ’lowest commission’ of 0.04% while charging an average of 0.051%. Many users, particularly older ones, paid higher fees unknowingly due to an unclear coupon registration process. These actions have prompted calls for intervention by South Korea’s Financial Services Commission and Fair Trade Commission. Despite ongoing investigations and controversy around its former CEO, Bithumb’s strong financial performance points to renewed stability in the crypto exchange sector. The case underscores heightened demand for transparency, robust user protection, and stricter oversight of fee disclosures and user interface design in the cryptocurrency market.