The Consumer Dispute Mediation Committee has ruled that Bithumb must waive trading fees worth 100,000 won per applicant in a collective dispute mediation case after the company changed payout conditions in the middle of an event. If Bithumb accepts the decision, the number of eligible recipients could expand to about 30,000 event applicants, drawing attention to its next steps and whether it can restore consumer trust.
According to the Consumer Dispute Mediation Committee under the Korea Consumer Agency on the 29th, Bithumb received a mediation decision stating that it must compensate applicants by waiving trading fees worth 100,000 won in event support funds related to its 'API First Trade Event' held in November last year.
The dispute stemmed from an event aimed at customers using an Application Programming Interface (API) for the first time, which allows users to submit and manage orders automatically through a program. At the time, Bithumb said that customers who applied for the event, received an API key, and completed a trade in the KRW Market would receive a full trading fee rebate and 100,000 won in linked support funds.
However, just eight days after the event began, on Nov. 18 last year, Bithumb added a note saying that one-time trades made solely for event benefits would be excluded from payment. The move was intended to block trades made only to collect rewards. Bithumb later excluded some participants from the support payment based on that standard. Although the full trading fee rebate was paid, consumers who had joined under the original terms filed for collective dispute mediation, saying the payout criteria had been changed after the fact.
The Consumer Dispute Mediation Committee determined that the newly added clause excluding one-time trades was not merely a clarification of the existing notice, but a new payout condition. It said applicants who completed their first API trade before the notice was changed had a legitimate expectation of receiving the support funds, and compensation was therefore necessary. The committee also found, under the Civil Act's reward offer provisions, that since the applicants had completed all the actions specified in the advertisement, the company was obligated to pay the promised reward.
The committee, however, decided that compensation should take the form of trading fee waivers rather than cash, considering the purpose of the event and the effectiveness of the remedy. It said the event was designed to promote API trading, and that Bithumb had also expressed an intention to compensate participants beyond the applicants. Accordingly, the committee ordered Bithumb to waive trading fees worth 100,000 won for the applicants by applying a 0.04% fee rate, lower than the existing 0.25% rate. The waiver will be valid for 12 months.
Bithumb, however, says it simply clarified its existing notice to restrict trades unrelated to the purpose of the event. The company explained that it had made the guidance more explicit after identifying numerous trading patterns aimed only at collecting rewards.
A Bithumb official told Sportschosun, "The event was planned to encourage API trading, but we identified many trading patterns that were aimed solely at receiving rewards, regardless of the event's purpose." The official added, "We clarified and explained the existing 'restriction on unfair trading' rule in the notice."
Still, Bithumb said it will decide whether to accept the mediation ruling after reviewing the final decision document.
A Bithumb official said, "We worked to resolve the dispute by proactively and actively offering opinions from a customer-protection standpoint so that a smooth mediation decision could be reached." The official added, "We will review the final mediation decision, seek the best way to restore customer trust, and inform users accordingly." The official also said, "We plan to hold internal discussions on future event design and operating methods as well."
A total of 77 people took part in the collective dispute mediation. If Bithumb accepts the ruling, the Consumer Dispute Mediation Committee will receive a compensation plan and proceed with the necessary steps so that event applicants who did not participate in the mediation can also be compensated under the same standards. The total number of event applicants is estimated at about 30,000, and if all are covered, total compensation could reach about 3 billion won.
In a collective dispute mediation case, if the parties accept the decision, it has the same effect as a final court ruling. Whether the mediation is finalized and the actual scope of compensation will depend on Bithumb's final decision.
Moon Ji-yeon
