South Korea Sanctions Upbit Operator Over $32M Hack

This is not the first enforcement action against Dunamu. The company already faces a proposed fine of 35.2 billion won ($25 million) for anti-money laundering violations uncovered separately from the hacking probe. Regulators also imposed a suspension on new customer transfers in February 2025. A court partially overturned that suspension in April 2026.

The FSS is testing what the law allows. If regulators impose meaningful sanctions for a hack under a statute that does not address hacking, it would signal broad interpretation of their powers. If the legal ambiguity limits action, it would expose a gap in South Korea's oversight of the crypto market.

The sanctions review committee is expected to meet in the coming weeks.