Dunamu, Parent Company of Upbit, Files Lawsuit Against South Korea's Financial Intelligence Unit (FIU)

Dunamu fights against the disciplinary measures issued by the governing authority. The legal action seeks to nullify all disciplinary measures imposed against Dunamu personnel and its personnel.

output: A subsidiary of blockchain company Dunamu, the parent company of cryptocurrency exchange Upbit, has filed a lawsuit against South Korea’s Financial Intelligence Unit (FIU).

The move follows disciplinary measures issued by the governing authority, which Dunamu is now seeking to annul.

The legal action aims to nullify all disciplinary measures imposed against Dunamu personnel and its personnel.

FIU Issues Disciplinary Action Against Dunamu and CEO

The company filed its case at the Seoul Administrative Court on February 27. At the same time the firm requested a hold of punishments until the sanctions were resolved. An official from the company said the decision was made after careful consideration, but no further details were provided. Dunamu has decided to express its defense strategy at the upcoming court proceedings.

On February 25, the FIU announced disciplinary measures against Dunamu, together with its workforce members. Dunamu was slapped with a three-month business shutdown, and CEO Lee Seok-woo received a disciplinary notice, as well as the ouster of its compliance official. The Specific Financial Information Act became the basis for authorities accusing the company.

New users will be unable to move digital property during the period of restricted transfer, which began on March 7 and will continue until June 6.

The enforcement decision was adopted after inspectors from FIU completed their examination from August to October last year. The inspection showed that Dunamu participated in business deals with overseas virtual asset operators who did not have proper registration. The company also did not satisfy requirements regarding identifying its customers.

Upbit Sanctions Case Could Shape Future Crypto Laws in South Korea

Upbit released a public statement acknowledging the imposed sanctions. The company responded to financial authority concerns while expressing that it implemented required corrections.

From Upbit’s perspective, some important aspects were not sufficiently considered during the decision-making stage of sanctions. The company will utilize the legitimate procedures mentioned in the regulations to present its full stance.

The legal dispute showcases how Korean authorities continue to clash with operators in the cryptocurrency market. Major crypto firms are pushing back against what they view as overly harsh government regulations, despite the official government controls.

This case will set a precedent that South Korean lawmakers might use for future decisions regarding digital asset regulations.