Bithumb is a South Korean cryptocurrency exchange platform, one of the largest and most popular platforms in that country. It allows users to buy, sell, and trade a variety of cryptos, including Bitcoin, Ethereum, and others.
However, the Bithumb crypto exchange received a large number of negative reviews, with many accusing the operators of fraudulent activities. The firm’s former chair has been involved in a legal trial and is facing charges. These are the key points our Bithumb Review focuses on as we aim to give you a clear picture of this platform and its legitimacy.
| Regulated by: | Unregulated Crypto Exchange |
| Is This Company Safe? | Issues May Occur |
| Known Websites: | bithumb.com |
| Have Warnings from: | AMF Canada |
| Registered in: | South Korea |
| Operating since: | 2015-06-16 |
| Trading Platforms: | Web |
| Maximum Leverage: | 1:1 |
| Minimum Deposit: | 1 USD |
| Deposit Bonus: | N/A |
| Trading Assets: | Cryptocurrencies |
| Free Demo Account: | Unavailable |
| How to Withdraw from This Company? | Since this company is unlikely to return your money – contact your bank or financial regulator, or simply reach out to us for professional assistance in recovering your funds. |
Legal Info: Is Bithumb Regulated?
The Bithumb exchange operates in a regulatory gray area, not subject to specific regulations but presumably under the oversight of the South Korean Financial Services Commission (FSC). The absence of clear regulatory guidelines has led to uncertainties surrounding the platform’s compliance.
The platform may also be subjected to on-site inspections and control by various authorities, including the Korean Fair Trade Commission (KFTC), of which the exchange is a member.
While the affairs are to be settled in Bithum’s home country, the exchange has no authorization to operate in other heavily regulated jurisdictions such as Canada, as evident from the warning issued by the Canadian AMF in 2022. Investors received an alert about the platform, as was the case with Gis Capital.
Former Chairman Stands Trial
The lack of a clear regulatory framework poses challenges for Bithumb, especially amidst its plans for an initial public offering (IPO) on KOSDAQ by 2025. The ongoing legal battle involving former chairman Lee Jeong-hoon spiced things up with potential repercussions for the exchange’s regulatory standing.
The controversial figure faces serious legal allegations, including violating the Act on Aggravated Punishment for Specified Economic Crimes, particularly fraud. Prosecutors have requested an eight-year prison sentence, claiming that Lee intended to exploit Bithumb’s governance restructuring for personal gain, bypassing financial regulations in the process.
The case dates back to 2018, with accusations that Lee defrauded substantial funds from the transaction. His defense disputed the claims, citing discrepancies in statements and questioning the reliability of the accusing party. The verdict, scheduled for January 18, 2024, not only holds personal consequences for Lee but also bears uncertainties for Bithumb’s regulatory status.
Trader Reviews – Sharing Experiences
When it comes to user feedback, it is not positive, to put it lightly. There are 34 negative Bithumb reviews on Trustpilot with countless accusations of the exchange performing illicit activities, platform manipulation, and other forms of fraud.
It seems that the firm receives more backlash each year. More complaints can be found on reviews.io. All in all, the reception among traders and investors was terrible.
With so many complaints, one cannot help but wonder whether the exchange is purposefully targeting unwary users to scam them. Some users suggest they were contacted via the Bithumb Telegram channel to receive a tempting offer.
To top it all off, there is a Reddit thread discussing the deceptive methods and inadmissible discrepancies some investors encountered on the exchange. Be sure to read these comments and get a clear picture of why the platform may not be a good choice for investments.
Who Are Bithumb’s Users?
The exchange was founded in 2013. According to godaddy.com/whois, the bithumb.com website domain was created on June 16, 2015, and updated eight years later. The majority of users reside in the following countries:
- United States;
- South Korea;
- Turkiye.
To reiterate, regulatory oversight and control are only possible in Bithumb’s home country of South Korea. The exchange is not eligible to operate in the United States or Turkiye. If you’re a non-Korean investor or trader, you should not be buying crypto on this platform, especially considering the recent Bithumb coin manipulation controversy.
How Effective Is the Trading Platform?
Bithumb’s trading platform looks very simple and prioritizes functionality for spot trading. Offering three trading options (general trade, easy trade, and reserved trade), the platform is supposed to benefit both novice and experienced users.
Although the exchange’s focus on essential trading functionalities aligns with its principle of providing a straightforward and user-friendly experience, some will find the lack of advanced tools and features a major issue in the long run.
Web platforms, offered by the likes of IP T Trade, are susceptible to manipulation, which explains all the issues traders experienced on Bithumb.
Fee Structure
Claiming to offer the industry’s lowest fees, Bithumb charges a basic trading fee of 0.15% for buying or selling, translating to 1.50 USD for a 1,000 USD XRP transaction. While technically not the absolute lowest compared to Binance’s flat 0.1% rate, users can access the Korean exchange vouchers within their accounts, enabling a reduction in fees by 0.01%-0.07%.
With potential maximum discounts awarded for substantial trading volumes, Bithumb pro aims to be among the most cost-effective options in the industry.
Payment Methods
To fund your Bithumb wallet, you will need to transfer funds via bank. The exchange primarily processes fiat currency payments exclusively through bank accounts. Deposits in fiat currency are free of charge, while withdrawals incur a nominal fee of 1000 won (~ 0.75 USD).
Cryptocurrency deposits, on the other hand, are free, but withdrawals involve a fee of 0.01 ETH 0.0005 BTC. Bithumb does not appear to accept payments via cards, limiting the payment options available to users, which is a major disadvantage.
Key Information To Consider About Bithumb
In conclusion, Bithumb is an unreliable crypto platform designed to offer the lowest fees in the industry for traders and investors. However, the platform is not regulated, or approved outside South Korea.
We do not recommend the exchange because it received countless complaints and a regulatory warning. Plus, its leadership has been accused of fraud! If you cannot withdraw your funds from Bithumb, we offer professional services and assistance. Book your free consultation with Scam Brokers Reviews today!
Book a free consultation with us and start the chargeback process.
FAQ Section
What is Bithumb?
Bithumb is the largest South Korean cryptocurrency exchange, offering many trading opportunities with low fees.
Who is the Owner of Bithumb?
The owner is Kang Jong-Hyun, who was arrested in early 2023 on charges of alleged embezzlement and stock manipulation.
Can US Residents Use Bithumb?
Yes, but it’s not recommended due to the exchange not being authorized in the United States.
