South Korean Police Investigate Alleged Political Interference in Upbit-Bithumb Stablecoin Fee Competition

According to BLOCKMEDIA, South Korean police are investigating allegations that a former aide to independent lawmaker Kim Byung-gi pressured the Financial Supervisory Service (FSS) in February 2025 to force Upbit to terminate fee-waiver promotions on $USDC and $USDT, aimed at easing financial pressure on competitor Bithumb over its zero-fee promotion.

The investigation highlights potential conflicts of interest: the aide obtained an informal advisor position at Bithumb months after the alleged intervention, while the lawmaker's son was also hired as an intern by the exchange. Bithumb denied awareness of any political interference, stating fee adjustments were independent commercial decisions.