Korbit, a South Korean cryptocurrency exchange that is currently in talks to be acquired by Mirae Asset, has been fined 2.73 billion won ($1.9 million) by South Korean regulators for multiple anti-money laundering and customer verification violations.
The Financial Intelligence Bureau said the exchange violated key provisions of the country’s special financial transactions law, including failing to conduct customer due diligence and restricting trading. In addition to the fine, Corbitt executives were issued institutional warnings and personal reprimands, the company announced Wednesday.
The enforcement action comes as Mirae Asset, a Seoul-based financial group not previously involved in crypto-related businesses, is in talks to acquire a majority stake in Korbit in a deal reportedly worth $98 million.
The FIU also “decided to impose sanctions on the relevant officers and employees, including a warning to the CEO and a reprimand to the person responsible for reporting,” the regulator’s notice said.
The FIU announced that it conducted an on-site inspection of Corbit in October 2024 and discovered thousands of anti-money laundering (AML) and know-your-customer (KYC) verification violations.
The group said the enforcement action is part of its efforts to “strengthen companies’ anti-money laundering capabilities and compliance systems so that the virtual asset market can earn public trust and grow.” In November, the FIU imposed a $25 million fine and other sanctions on Dunam, the operator of South Korea’s largest cryptocurrency exchange Upbit, for similar violations.