South Korea’s FSS probes Upbit over its $36M Solana hack, scrutinizing disclosure timing and crypto safety controls.
Upbit is again within the regulatory highlight after South Korea’s Monetary Supervisory Service moved to open sanctions proceedings towards Dunamu, the alternate operator.
The case stems from a Solana hot-wallet breach that Upbit disclosed final November. A submit by That Martini Man on X pointed to the inspection letter, and native stories later confirmed the regulator had despatched Dunamu an opinion discover.
The transfer offers the corporate a proper window to reply earlier than penalties are set.
FSS Opens Sanctions Overview
The FSS stated it despatched an inspection report back to Dunamu after ending a months-long evaluate of the breach. SBS reported that the regulator first opened its inspection about seven months earlier.
The evaluate facilities on whether or not Upbit met its duties below South Korea’s Digital Asset Person Safety Act.
Upbit is dealing with regulatory motion after a $36 million crypto exploit.
South Korea’s Monetary Supervisory Service has reportedly despatched Dunamu, the corporate behind Upbit, an inspection letter outlining its findings.
This begins the formal evaluate course of, with Dunamu now capable of… pic.twitter.com/ukZ1zBJE1Q
— That Martini Man ₿ (@MartiniGuyYT) July 19, 2026
The regulation covers consumer safety and unfair buying and selling, however it doesn’t spell out direct penalties for hacks or IT failures.
That authorized hole issues now. The FSS should transfer by way of its sanctions course of earlier than it could possibly decide on any ultimate punishment, and the choice nonetheless runs by way of a number of evaluate levels.
The timing additionally retains consideration on Upbit’s inside controls. Regulators are how the alternate dealt with the breach, and how briskly it informed the general public and authorities.
Upbit Hack Timeline and Losses
Upbit stated the breach hit its Solana sizzling pockets on November 27, 2025. SBS reported that the withdrawals ran for about 54 minutes, from 4:42 a.m. to five:36 a.m. KST.
The overall loss got here to 44.5 billion gained, or about $36 million based mostly on Upbit’s disclosure and later protection.
The stolen property weren’t restricted to 1 token. Studies stated the haul included SOL and a mixture of Solana ecosystem tokens.
Upbit additionally confronted criticism over when it disclosed the incident. Native reporting stated the alternate introduced the hack solely after a merger-related occasion with Naver Monetary had ended that very same day.
The alternate moved to include the harm quick. SBS reported that Dunamu froze 2.6 billion gained of the affected property and coated 38.6 billion gained in consumer losses with firm funds.
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This isn’t Upbit’s first hot-wallet breach. The Block each famous that the alternate additionally suffered a serious hack in 2019.
That historical past now sits beside a broader coverage push in Seoul. SBS reported that authorities plan to handle hacking and IT failure penalties within the Digital Asset Primary Act, which might give regulators clearer sanctioning powers.
For now, the FSS continues to be within the response stage. Dunamu can reply the inspection findings earlier than the regulator units a proposed penalty degree, then the case strikes by way of the evaluate committees.
The case places recent stress on crypto exchanges that depend on sizzling wallets for liquidity. It additionally exhibits how briskly a safety breach can flip right into a authorized check for crypto compliance in South Korea.