Upbit, one of many largest South Korean crypto exchanges, has denied accusations of charging brokerage charges for itemizing tokens on its platform, calling its accusers to supply concrete proof of such incidence.
The allegations have been made by Wu Blockchain, a crypto information platform, when it shared a scoop on X (previously Twitter) claiming that a number of initiatives paid large middleman charges to have their tokens listed on two of South Korea’s main crypto exchanges, Upbit and Bithumb.
In accordance with Wu Blockchain, the charges have been roughly $2 million and $10 million, respectively, they usually have been orchestrated by intermediaries associated to Upbit’s shareholders and market makers.
Among the initiatives knowledgeable Wu Blockchain that they supplied an middleman payment starting from 3% to five% of the overall token quantity, earlier than getting listed on Upbit efficiently.
The information platform additionally reported that this wasn’t the case with all of the seven initiatives they reached out to. In accordance with them, three of the initiatives reported that they didn’t pay any middleman payment earlier than they acquired listed.
SCOOP: A number of initiatives informed WuBlockchain that they paid large middleman charges to have their tokens listed on South Korea’s largest cryptocurrency exchanges, Upbit and Bithumb. The charges have been roughly US$10 million and US$2 million respectively. The intermediaries are… pic.twitter.com/PODtooUaYd
— Wu Blockchain (@WuBlockchain) March 20, 2025
Upbit’s response and message to customers
In response to those allegations, Upbit denied the allegations in a press launch addressed to its customers, stating, “Upbit doesn’t enable the involvement of exterior companies to help or intermediate buying and selling assist, and all procedures are carried out immediately by Upbit staff.”
The trade additionally talked about that it evaluates initiatives via a strict inside evaluate course of based mostly on its buying and selling assist procedures and that it doesn’t proceed with buying and selling assist below any monetary compensation circumstances.
The trade urged customers and initiatives to keep away from corporations or people that method them for middleman charges, claiming that they’re unlawful brokers and unrelated to Upbit.
The trade additionally requested that Wu Blockchain share with them the listing of digital property listed on their platform that paid such middleman charges in addition to concrete proof and supporting supplies backing up the declare as they’re organising an investigation into the matter.
Upbit additionally requested customers to report circumstances of middleman interference in its press assertion. In response to the request, Wu Blockchain talked about that it couldn’t disclose that data because it has to guard its supply.
Upbit’s battles with regulators
Upbit lately had a run-in with South Korea’s Monetary Intelligence Unit (FIU), which accused the platform of KYC violations numbering 1000’s. The regulator additionally found that Upbit facilitated transactions with unregistered overseas service suppliers, which violates South Korea’s particular Monetary Info Act.
All these violations led to the regulators sanctioning the platform on February 25, 2025, putting a ban on the platform’s means to onboard new customers. New customers on the platform received’t be capable to deposit or carry out withdrawals from March 7 till June 6. The dad or mum firm of Upbit, Dunamu, has appealed the transfer and is engaged on overturning the choice.
In a transfer that signified that the corporate could also be actively working to be on the precise facet of the legislation, the platform introduced earlier at present that it will likely be revealing six corporations suspected of partaking in Ponzi fraud through the platform and shall be limiting the withdrawal of asset to the businesses in accordance the Enforcement Decree of the Digital Asset Consumer Safety Act of South Korea.
In its concluding publish on X, Wu Blockchain urged the South Korean regulators to look into the matter, particularly relating to the market markers. Given Upbit’s present progress, if these middleman payment and market marker allegations become true, it will likely be a significant setback for the platform. This may convey again extra scrutiny on the platform which can be seeing itself pay out thousands and thousands of {dollars} in fines resulting from earlier violations.
