Dunamu Takes Legal Action Against FIU Over Business Suspension Order
Dunamu, the parent company of South Korea’s largest crypto exchange, Upbit, has reportedly filed a lawsuit against the country’s Financial Intelligence Unit (FIU) challenging a business suspension order.
Upbit Challenges FIU
- On Feb. 28, Dunamu filed a lawsuit with the Seoul Administrative Court to overturn the FIU’s sanctions.
- Last November, South Korean regulators accused Upbit of failing to conduct proper customer due diligence.
- The FIU barred the exchange’s new customers from transferring virtual assets on Upbit between March 7 and June 6.
- Dunamu argues that the penalty will significantly impact its operations and claims the sanctions are disproportionate.
Dedicated Crypto Unit
- South Korea’s Seoul Southern District Prosecutors’ Office has launched a specialized Joint Investigation Unit (JIU) to combat cryptocurrency-related crimes.
- The unit comprises 35 financial regulators and prosecutors focusing on investigating and prosecuting crypto-related fraud, theft, and illicit market activities.
- A temporary task force set up in 2023 led to the establishment of this permanent unit due to the increasing complexity of cryptocurrency-related crimes.
Since the launch of the initial task force, prosecutors have charged 74 individuals and arrested 25 in cases involving fraudulent schemes and market manipulation.
