Bithumb rejects 3 billion won mediation proposal over API trading dispute

The South Korean exchange’s refusal ends mediation over an API event, opening the way for civil suits and possible class-action support as regulatory pressure builds ahead of a planned 2028 IPO.

BTC

Summary

Bithumb has formally rejected a consumer dispute mediation proposal recommending about 3 billion won ($2.1 million) in compensation for customers affected by an API event, ending the process as unsuccessful and leaving claimants free to pursue individual civil lawsuits. The Korea Consumer Agency also plans an internal review on whether to support a class-action lawsuit. The dispute stems from a November event in which Bithumb offered integration support funds and trading fee paybacks to first-time API users, then added a notice during the event that one-time transactions were excluded from payout eligibility. The Consumer Dispute Settlement Commission ruled in June that benefits should be provided based on the conditions in place at initial registration and proposed waiving trading fees of 100,000 won per affected claimant, but Bithumb said legal disagreements made it unable to accept the recommendation. The case adds to broader regulatory pressure, including an FIU sanctions challenge, a formal sanction process tied to a February Bitcoin overpayment incident, and delays in the exchange’s VASP renewal review, all of which could complicate its target of seeking a preliminary listing review in 2027 and completing an IPO in 2028.

Terms & Concepts
  • API: An application programming interface that allows software or users to connect directly to an exchange for automated trading.
  • VASP: A virtual asset service provider, a regulatory designation for firms such as crypto exchanges that handle digital-asset services.
  • class-action lawsuit: A court case in which a group of affected consumers pursue similar claims together rather than filing separately.