South Korea's Financial Supervisory Service has launched a formal sanctions review of Dunamu, the operator of the country's largest crypto exchange, following a security breach that drained about KRW 44.5 billion ($30 million) in Solana-related assets. The inspection report was sent to Dunamu on July 19, 2026, nearly eight months after the November 27, 2025 incident.
What the hack cost users
The attack targeted Solana ecosystem assets. Dunamu later reimbursed roughly KRW 38.6 billion of the stolen funds and froze another KRW 2.6 billion in stolen assets. That still left a gap of about KRW 3.3 billion — roughly $2.2 million — that users had to absorb before the company stepped in.
How the sanctions process works
The review follows a multi-step procedure. First, Dunamu will submit its response to the FSS. Then the regulator proposes a sanction. That proposal goes to a Sanctions Review Committee, then to the Securities and Futures Commission, and finally lands on the desk of the Financial Services Commission for a binding decision. The outcome could range from a fine to operational restrictions that affect how the exchange lists tokens or handles customer funds.
Why the law didn't cover this
Authorities acknowledged that the current Virtual Asset User Protection Act has gaps when it comes to penalizing hacks. The law was written before large-scale exchange breaches became routine. Those gaps are supposed to be closed in the second phase of the Digital Asset Basic Act, but that legislation hasn't been passed yet.
What users should know now
For now, nothing changes. Dunamu continues to operate normally. But if the final decision includes sanctions, the exchange could face restrictions that ripple through the market. The FSS hasn't said how long the review will take. In the meantime, the standard advice applies: spread holdings across multiple venues and use self-custody wallets where practical.
The next formal step is Dunamu's written response to the FSS. That document will shape the regulator's proposed sanction and set the timeline for the committee hearings.
