Overview
- This week the Financial Supervisory Service sent Dunamu an inspection opinion letter, formally starting a multi-stage sanctions review that will go to a sanctions review committee, the Securities and Futures Commission and the Financial Services Commission.
- The investigation traces to a November 27, 2025 hot‑wallet breach that targeted Solana assets, lasted about 54 minutes and drained 44.5 billion won in total value.
- Upbit responded by halting deposits and withdrawals, moving assets to cold storage, tracing and freezing a portion of the stolen funds and reimbursing affected customers from company reserves.
- The FSS's roughly seven‑month inspection found exchange security failures and problems with the timing of Upbit's public disclosure, but the current Virtual Asset User Protection Act contains no explicit penalties for hacking or system failures.
- Regulators' next steps and any penalties will shape whether authorities can impose sanctions under existing law, influence Dunamu's delayed share‑swap with Naver Financial and likely prompt the planned second phase of digital‑asset legislation to add hacking and compensation rules.