Upbit, one of the largest cryptocurrency exchanges in South Korea, has denied allegations of charging brokerage fees for token listings on its platform, calling on accusers for concrete evidence.
The Allegations
The allegations were made by Wu Blockchain, a crypto news platform, claiming that several projects paid large intermediary fees to have their tokens listed on two of South Korea’s leading crypto exchanges, Upbit and Bithumb. According to Wu Blockchain, the fees were approximately $2 million and $10 million, respectively, and were facilitated by intermediaries related to Upbit’s shareholders and market makers. Some projects informed Wu Blockchain that they provided an intermediary fee ranging from 3% to 5% of the total token amount before getting listed on Upbit successfully. However, not all of the seven projects contacted confirmed having paid intermediary fees.
Upbit's Response
In response, Upbit issued a press release asserting it does not allow the involvement of external agencies in trading support. All procedures are conducted directly by Upbit employees. The exchange clarified it evaluates projects through a strict internal review process and does not support trading under financial compensation conditions. Upbit urged users to avoid companies or individuals offering intermediary services, stating they are illegal brokers not affiliated with the platform. Wu Blockchain refused to provide the list of digital assets that allegedly paid such fees, citing the need to protect its sources.
Upbit's Relations with Regulators
Upbit recently encountered issues with South Korea’s Financial Intelligence Unit (FIU), which accused the platform of KYC violations. The regulator also found that Upbit facilitated transactions with unregistered foreign service providers, violating local financial laws. These violations led to sanctions preventing the platform from onboarding new users from March 7 to June 6, 2025. Dunamu, the company owning Upbit, is appealing the decision. In a move to comply with regulations, Upbit announced it would limit asset withdrawals for six companies suspected of fraud. Wu Blockchain urged South Korean regulators to investigate these allegations thoroughly.
If the allegations of brokerage fees are confirmed, it would represent a significant setback for Upbit, increasing scrutiny and potential fines.
