21-3-2025 – South Korean cryptocurrency exchange Upbit has issued a firm denial regarding allegations of charging substantial brokerage fees for token listings, challenging accusers to present tangible evidence whilst the platform navigates an increasingly complex regulatory landscape.
Intermediary fee controversy emerges
The dispute erupted when crypto news platform Wu Blockchain published claims on social media platform X (formerly Twitter) alleging that several blockchain projects had paid significant intermediary fees—reportedly orchestrated by individuals connected to Upbit’s shareholders and market makers—to secure listings on prominent South Korean exchanges.
According to the controversial report, projects allegedly disclosed having provided intermediary fees ranging from 3% to 5% of their total token supply before successfully obtaining listings on Upbit. The news platform claimed that some intermediary arrangements involved substantial sums, with fees reportedly reaching approximately £2 million for Upbit listings.
In its reporting, Wu Blockchain noted that its investigation yielded mixed results, with three of the seven projects contacted asserting they had secured listings without paying any intermediary fees—suggesting inconsistent practices rather than systematic requirements.
Exchange issues categorical denial
Responding to these allegations through an official press statement addressed directly to its users, Upbit categorically rejected the claims, stating: “Upbit does not allow the involvement of external agencies to assist or intermediate trading support, and all procedures are conducted directly by Upbit employees.”
The exchange emphasised its commitment to a rigorous internal review process for evaluating potential token listings, asserting that it adheres strictly to established trading support procedures and explicitly “does not proceed with trading support under any financial compensation conditions.”
In a pointed challenge to its accusers, Upbit formally requested that Wu Blockchain provide concrete evidence supporting these allegations, including a comprehensive list of digital assets purportedly listed through intermediary arrangements. Wu Blockchain declined this request, citing journalistic responsibility to protect its sources—leaving the allegations in an evidential stalemate.
Regulatory complications compound challenges
The controversy emerges at a particularly challenging moment for the exchange, which recently found itself sanctioned by South Korea’s Financial Intelligence Unit (FIU) following accusations of thousands of Know Your Customer (KYC) violations and facilitating transactions with unregistered foreign service providers—actions that contravene the nation’s Financial Information Act.
These regulatory infractions resulted in substantial penalties, including a temporary prohibition on new user onboarding and a three-month suspension of deposit and withdrawal capabilities for new accounts effective from 7th March until 6th June. Dunamu, Upbit’s parent company, has launched an appeal against these measures whilst working to address the underlying compliance issues.
Proactive compliance efforts amidst allegations
In what appears to be a strategic compliance initiative, Upbit recently announced plans to identify six companies suspected of conducting Ponzi fraud through its platform. The exchange indicated it would impose withdrawal limitations on these entities in accordance with South Korea’s Enforcement Decree of the Virtual Asset User Protection Act—potentially signalling heightened vigilance regarding illicit activities.
Wu Blockchain has publicly called for South Korean regulatory authorities to investigate the intermediary fee allegations, particularly regarding the role of market makers. Should these accusations ultimately prove accurate, industry observers suggest they could represent a significant setback for the exchange at a time when it already faces intensified regulatory scrutiny and potential financial penalties stemming from previous compliance failures.
The exchange has meanwhile urged users to report any instances of intermediary interference, characterising such facilitators as “illegal brokers” operating without legitimate connection to Upbit—a stance that reinforces its public position against third-party listing arrangements whilst the controversy continues to unfold.