South Korea Opens Sanctions Process Against Dunamu Over $32 Million Upbit Hack
Forecast Trend Report by Period
South Korea’s financial authorities have begun sanction proceedings against Dunamu, the operator of crypto exchange Upbit, over a hacking incident.
The Financial Supervisory Service recently sent Dunamu an inspection opinion related to last year’s 44.5 billion won ($32.2 million) hack, Yonhap News reported on July 19, citing industry sources. The step came seven months after the regulator began its inspection following the breach.
Upbit was hacked in November 2025, resulting in the loss of Solana network-related assets worth 44.5 billion won ($32.2 million). Of the stolen assets, 2.6 billion won ($1.9 million) is subject to freezing and recovery procedures. Dunamu fully covered 38.6 billion won ($27.9 million) with Upbit’s own funds.
The FSS has been reviewing whether Dunamu violated the Virtual Asset User Protection Act after the incident, the report said. Still, current law does not include direct sanction provisions for hacking or system failures, raising uncertainty over whether the case will result in severe penalties.
The regulator plans to give Dunamu advance notice of its proposed sanctions after the company completes its explanation process. Final sanctions will be determined after deliberations by the Sanctions Review Committee, the Securities and Futures Commission and the Financial Services Commission.
