South Korea’s Financial Supervisory Service has formally started sanctions proceedings against Dunamu, the operator of Upbit, after a November 2025 hack drained about 44.5 billion won, or roughly $30 million, from the exchange. Most of the losses were covered with company funds, while some stolen assets were frozen and recovered. Authorities suspect Lazarus was behind the attack. The case has drawn attention to gaps in South Korea’s current crypto framework, which does not provide direct penalties for hacks or system failures, prompting plans to establish sanctions and compensation rules under a Digital Asset Basic Act.