Upbit rejects listing fee allegations, demands proof from Wu Blockchain

South Korean cryptocurrency exchange Upbit has denied allegations that it charges brokerage fees for token listings, calling on Wu Blockchain to provide proof.

The exchange emphasized that all trading support decisions undergo a strict internal review process without financial compensation. Upbit also warned users to be cautious of fraudulent intermediaries and stated it would take legal action against illegal brokers.

In other words, Upbit claims that its listings are based on internal evaluations rather than financial deals. The company insists that token projects cannot simply buy their way onto the platform.

Listing fees

The controversy follows a series of tweets from Wu Blockchain, which claimed that multiple projects paid fees to intermediaries to secure listings on Upbit and rival exchange Bithumb. 

According to Wu Blockchain’s post, intermediary fees were reportedly around $10 million for Upbit and $2 million for Bithumb, with some intermediaries allegedly connected to Upbit’s shareholders and market makers. 

The report also suggested that some projects provided intermediary fees ranging from 3% to 5% of their total token supply. This implies that instead of paying a fixed fee, some projects might be offering a portion of their tokens to secure a listing.

Wu Blockchain reached out to seven projects, with three denying any involvement in such payments. 

After Upbit’s response, Wu Blockchain updated its posts and said it “needs to protect the source, so we cannot disclose specific information.”