The Korea Consumer Agency has launched group dispute resolution proceedings against cryptocurrency exchange Bithumb over unpaid event subsidies, after the company modified payout conditions following its initial announcement.
The Consumer Dispute Resolution Committee announced on the 6th that it has decided to initiate group dispute resolution proceedings regarding complaints filed over Bithumb's "API integration event subsidy payments."
The dispute centers on an "API Trading Customer Event" that Bithumb launched on November 10 last year. The exchange had announced it would provide full trading fee cashback and a 100,000 won API integration subsidy to first-time API trading customers. API services enable automated functions including price inquiries, asset verification, and buy/sell orders.
However, Bithumb subsequently added a clause stating that "one-time transactions made solely for the purpose of receiving event benefits are excluded," and used this as grounds to deny subsidies to some users. In response, 77 consumers filed for group dispute resolution, claiming they met the originally announced event conditions but did not receive the subsidies.
The committee determined that more than 50 consumers who legitimately participated in the event did not receive benefits, and that the key issues in the case are common among complainants.
A resolution decision will be issued within 30 days after the dispute resolution procedure announcement period ends on the 23rd of this month. This period may be extended twice, each for up to 30 days, if justifiable grounds exist.
The Korea Consumer Agency will not accept additional participation applications to expedite the resolution process. However, if Bithumb accepts the resolution decision, the agency plans to obtain a compensation plan to provide collective compensation to consumers who did not file for dispute resolution.
Meanwhile, Bithumb recently caused a massive payment error during a separate marketing event. Last month, while attempting to distribute 620,000 won to 249 customers as event subsidies, the exchange mistakenly transferred 620,000 Bitcoin (BTC). Given that Bitcoin was trading at approximately 98 million won per coin at the time, the erroneous payment amounted to roughly 60.76 trillion won.
"As public interest in the credibility of cryptocurrency exchanges continues to grow, we will work to develop a swift and reasonable resolution," said Han Yong-ho, Chairman of the Consumer Dispute Resolution Committee.