South Korea FSS Initiates Sanctions Process Against Dunamu After $36 Million Hack

The South Korean Financial Supervisory Service (FSS) has initiated the sanctions process against Dunamu, the operator of Upbit crypto exchange.

This move comes as the Virtual Asset User Protection Act in South Korea lacks explicit provisions for hacking and computer system incidents, leaving the scope of penalties uncertain.

The FSS sent an inspection opinion letter to Dunamu regarding the $36 million hack that occurred in November 2025. This marks the formal start of a sanctions procedure by the financial authorities, providing Dunamu with an opportunity to respond to the inspection's findings before the regulator notifies the company of its proposed sanctions.