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Photo = Dunamu |
[Alpha Biz= Paul Lee] Dunamu, the operator of Upbit, the largest cryptocurrency exchange in South Korea, has filed a lawsuit against the Financial Intelligence Unit (FIU) under the Financial Services Commission, challenging the sanctions imposed on the company.
The lawsuit was filed with the Seoul Administrative Court on the evening of the 28th, seeking to cancel the FIU's decision to suspend part of Upbit's operations. Dunamu also requested an injunction to halt the enforcement of the sanction.
FIU had imposed two major sanctions on Dunamu, including a three-month suspension of business, which would prevent new users from making transactions (deposits and withdrawals) between March 7 and June 6. Additionally, nine executives, including CEO Lee Seok-woo, were given disciplinary measures such as “warning” and the compliance officer was dismissed.
The sanctions stemmed from Upbit's violation of the Specific Financial Transactions Information Act (Special Act), including supporting over 45,000 transactions with unregistered foreign exchanges despite multiple warnings from FIU. Moreover, Upbit failed to conduct proper customer verification checks, allowing transactions without clear evidence of identity verification.
Dunamu has stated that it will address the allegations and explain its position during the legal process.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
