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 offer concrete proof of such prevalence.
The allegations had been made by Wu Blockchain, a crypto information platform, when it shared a scoop on X (previously Twitter) claiming that a number of tasks paid big middleman charges to have their tokens listed on two of South Korea’s main crypto exchanges, Upbit and Bithumb.
In keeping with Wu Blockchain, the charges had been roughly $2 million and $10 million, respectively, and so they had been orchestrated by intermediaries associated to Upbit’s shareholders and market makers.
A few of the tasks knowledgeable Wu Blockchain that they supplied an middleman price starting from 3% to five% of the whole 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 tasks they reached out to. In keeping with them, three of the tasks reported that they didn’t pay any middleman price earlier than they acquired listed.
SCOOP: A number of tasks advised WuBlockchain that they paid big middleman charges to have their tokens listed on South Korea’s largest cryptocurrency exchanges, Upbit and Bithumb. The charges had 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 help, and all procedures are performed instantly by Upbit workers.”
The change additionally talked about that it evaluates tasks by way of a strict inner overview course of primarily based on its buying and selling help procedures and that it doesn’t proceed with buying and selling help below any monetary compensation circumstances.
The change urged customers and tasks to keep away from corporations or people that method them for middleman charges, claiming that they’re unlawful brokers and unrelated to Upbit.
The change additionally requested that Wu Blockchain share with them the checklist of digital belongings 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 instances of middleman interference in its press assertion. In response to the request, Wu Blockchain talked about that it couldn’t disclose that info because it has to guard its supply.
Upbit’s battles with regulators
Upbit just lately had a run-in with South Korea’s Monetary Intelligence Unit (FIU), which accused the platform of KYC violations numbering hundreds. The regulator additionally found that Upbit facilitated transactions with unregistered international service suppliers, which violates South Korea’s particular Monetary Data Act.
All these violations led to the regulators sanctioning the platform on February 25, 2025, inserting a ban on the platform’s capability to onboard new customers. New customers on the platform received’t have the ability to deposit or carry out withdrawals from March 7 till June 6. The mother or father 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 proper facet of the regulation, the platform introduced earlier right this moment that it will likely be revealing six corporations suspected of participating in Ponzi fraud by way of the platform and might 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 submit on X, Wu Blockchain urged the South Korean regulators to look into the matter, particularly concerning the market markers. Given Upbit’s present progress, if these middleman price and market marker allegations transform true, it will likely be a significant setback for the platform. This is able to convey again extra scrutiny on the platform which can be seeing itself pay out hundreds of thousands of {dollars} in fines on account of earlier violations.
