South Korea targets Dunamu over Upbit hack as legal gaps emerge

South Korea’s FSS has initiated sanctions against Dunamu, the operator of Upbit crypto exchange, following a wallet breach in November 2025. The current law lacks direct penalties for hacking, leading to uncertainty about the severity of sanctions. Upbit reimbursed affected users and regulators are closely examining the incident. The FSS will review Dunamu’s response before determining any penalties. South Korean authorities are considering stronger rules for hacking and technology failures in digital asset legislation.