Chinese crypto news blogger Collin Wu recently revealed that several crypto projects had to pay exorbitant fees to secure listings for their tokens on major South Korean crypto exchanges. This revelation has raised concerns about the transparency and integrity of the listing process on these exchanges.
According to Wu, four crypto projects admitted to paying fees ranging from 3% to 5% of their total token amount to intermediaries in order to successfully list their tokens on Upbit, one of the top crypto exchanges in South Korea. The total amount paid by these projects was reported to be around US$10 million to Upbit and US$2 million to Bithumb. The intermediaries involved in these transactions were identified as shareholders and market makers associated with Upbit.
It is important to note that out of the seven crypto projects contacted by Wu, three denied paying any fees for listing their tokens. This discrepancy raises questions about the fairness and transparency of the listing process on these exchanges. While no official response has been issued by the executives of Upbit and Bithumb, it is crucial for regulators to investigate these allegations to ensure a level playing field for all crypto projects.
In a similar vein, accusations of misconduct have been leveled against other major crypto exchanges such as Coinbase and Binance in the past. However, many crypto projects have defended these exchanges against such allegations, dismissing them as baseless.
In a separate development, the Financial Intelligence Unit (FIU) took regulatory action against Upbit in February 2025 for violations of KYC obligations. The investigation by FIU revealed thousands of KYC violations and cases of incorrect or missing address details provided by users. As a result, Upbit faced a temporary ban on new user crypto transfers between March 7 and June 6, 2025. Despite challenging the regulatory action in court, Upbit has yet to receive any reprieve.
On March 20, 2025, Upbit imposed restrictions on certain crypto accounts suspected of running Ponzi schemes, further adding to the scrutiny surrounding the exchange. These developments highlight the need for stricter regulations and oversight in the crypto industry to prevent malpractices and ensure the protection of investors.
As the crypto market continues to evolve, it is essential for investors to stay informed and exercise caution when engaging with crypto exchanges. The allegations of bribery for listings on South Korean exchanges serve as a stark reminder of the challenges and risks inherent in the crypto space.