Bithumb rejects $2.2M API event compensation plan, raising class action risk

South Korean crypto exchange Bithumb has rejected a consumer dispute mediation proposal calling for a total of 3 billion won ($2.2 million) in compensation for victims of an automated trading, or API, event, the Seoul Economic Daily reported in an exclusive. In June, the Korea Consumer Agency’s Consumer Dispute Mediation Commission had decided that Bithumb should waive trading fees worth 100,000 won for each claimant. The Seoul Economic Daily said the dispute could escalate into civil litigation, adding to regulatory risks including financial authorities’ sanctions and delays in the review of Bithumb’s virtual asset service provider, or VASP, renewal, which could weigh on its push for a 2028 IPO.