Bithumb Sues FIU Over AML Sanctions in Regulatory Pushback

Bithumb files a lawsuit against FIU to challenge AML sanctions and a six-month suspension, signaling growing clashes between crypto exchanges and regulators.

Rich by Coin

2026-03-24

Bithumb, the country’s second-largest virtual asset exchange, has taken legal action against the disciplinary action of the FIU under the Financial Services Commission. Conflicts between the virtual asset industry and regulators are spreading as the industry’s No. 1 Upbit and Bithumb have filed administrative lawsuits against financial authorities. According to the virtual asset industry on the 24th, Bithumb recently appointed the law firm Pacific as its legal representative and filed a lawsuit against the FIU the previous day. Along with the main lawsuit, Bithumb also applied for a temporary suspension of execution to stop the effect of the disposition.

If the court cites the application, Bithumb’s partial suspension of business, which is about to come on the 27th, will be suspended until a ruling on the main case is made. Bithumb said, “We decided that additional legal review was needed regarding the disciplinary action of the authorities,” adding, “We will sincerely explain the company’s position during the future trial.” The beginning of this lawsuit is the FIU’s decision to sanction on the 16th. Initially, the FIU judged that Bithumb violated its anti-money laundering (AML) obligations specified in the Specific Financial Information Act (Special Privileges Act) and imposed a huge fine of 36.8 billion won along with a “six-month suspension of business” that restricts new subscribers from depositing and withdrawing outside virtual assets.

This is not the first time that a virtual asset exchange has chosen to go to court in defiance of the FIU’s disciplinary action. Its competitor Upbit (operator Dunamu) also applied for immediate cancellation and suspension of execution immediately after receiving a “three-month suspension of business” and a 35.2 billion won fine for violating the Special Fee Act in November last year. Upbeat’s first trial will be held on the 9th of next month. The FIU has recently reaffirmed its principle of responding strictly to the risk of money laundering by continuing follow-up measures to the field inspection sequentially.