South Korea's FSS Launches Sanctions Process Against Dunamu Over $36M Upbit Hack

According to Yonhap News, South Korea's Financial Supervisory Service (FSS) sent an inspection opinion letter to Dunamu, operator of crypto exchange Upbit, on Sunday, formally beginning a sanctions process related to the $36 million hack from November 2025. The letter initiates a formal review and gives Dunamu the opportunity to respond before the regulator issues its final sanctions decision. Upbit faced criticism for delaying its announcement of the breach, which lasted about 54 minutes on November 27 before the exchange announced it hours later.

Following the exploit, Upbit froze approximately 2.3 billion won ($1.5 million) in affected funds and committed to full reimbursement from its balance sheet. In December, the exchange launched its Onchain AI Tracer System to track stolen funds and support recovery efforts.