South Korean regulator begins sanctions process against Dunamu: Report
South Korea’s Financial Supervisory Service reportedly sent Dunamu, operator of Upbit, an inspection opinion letter over the exchange’s $36 million November 2025 hack. That letter formally begins a sanctions process and gives Dunamu a chance to respond before proposed penalties are issued. Regulators are also examining whether Upbit violated the Virtual Asset User Protection Act, while noting the law lacks clear sanctions for cyberattacks or system failures. Authorities may add such provisions in the second phase of the Digital Asset Basic Act. Upbit faced criticism for delaying disclosure of the breach, which lasted about 54 minutes but was announced only after a Naver Financial-related event ended. Upbit said it froze some funds, fully reimbursed affected users, overhauled its wallet architecture, and later launched an onchain tracing tool to help recover stolen assets.
