South Korean regulator moves toward Upbit sanctions

• South Korea's Financial Supervisory Service has started sanctions proceedings against Upbit after a US$36 million hack.
• Hackers stole about 44.5 billion won worth of Solana (CRYPTO:SOL)-based assets from the exchange in November 2025.
• The case could lead to stronger crypto security rules because current laws lack clear hacking penalties.

South Korea's Financial Supervisory Service has sent an inspection letter to Dunamu, the operator of Upbit, after last year's US$36 million crypto hack.

The letter starts the formal sanctions process following the theft of about 44.5 billion won worth of (CRYPTO:SOL)-based assets from an Upbit hot wallet.

The hack lasted about 54 minutes before Upbit froze deposits and withdrawals, moved funds into cold wallets, and promised to repay affected users.

The regulator is reviewing whether Upbit met its security duties, but current crypto laws do not clearly set penalties for hacking incidents.

Officials are also considering new rules that would require stronger security standards and clearer customer compensation after cyberattacks.

The case is part of South Korea's wider push to tighten oversight of the country's fast-growing crypto market.

The investigation could shape future crypto regulations as authorities work to improve exchange security and investor protection.

At the time of reporting, Solana price was $75.92.