Upbit filed an appeal to the court, requesting the cancellation of the suspension penalty imposed by the South Korean financial regulatory agency

ChainCatcher news, according to Yonhap News Agency, the operator of the South Korean virtual asset exchange Upbit, Dunamu, has filed a lawsuit with the Seoul Administrative Court to revoke the business suspension order imposed by the Financial Intelligence Unit (FIU) of South Korea and has applied for a stay of execution.

Previously, on February 25, the FIU made several punitive decisions against Dunamu and its employees for violating the Specific Financial Information Act, including a three-month business suspension for nine employees, a warning issued to CEO Lee Seok-woo, and the dismissal of the compliance officer. The suspension order will restrict new customers from transferring virtual assets from March 7 to June 6.

The FIU's penalties stem from on-site inspections conducted from August to October last year, which found that Dunamu had conducted transactions with unreported virtual asset operators abroad and violated customer verification obligations. Dunamu stated that it will truthfully explain the relevant circumstances during the court hearing.