According to BlockBeats, on July 19, the Financial Supervisory Service of South Korea issued an inspection report to Dunamu, the parent company of Upbit, regarding the hacking incident that occurred last November, formally initiating sanctions proceedings. Dunamu only disclosed the hacking incident after its merger with Naver Financial concluded that day, sparking controversy over the "delayed reporting." The company subsequently froze and recovered approximately 2.6 billion won in assets, while the remaining 38.6 billion won in user losses were fully compensated by Upbit's own assets.

South Korea's current Virtual Asset User Protection Act focuses on user protection and unfair trading, but lacks direct penalties for hacking and system incidents. Whether this sanction will be upgraded to a severe penalty remains uncertain. The head of the Financial Supervisory Service previously admitted that "the authority to impose penalties is relatively limited, but this is not an incident that can be easily overlooked." South Korean financial authorities plan to supplement the Digital Asset Basic Law with sanctions and compensation clauses for hacking and system incidents in the second phase of legislation. After Dunamu completes its explanation process, the Financial Supervisory Service will finalize the sanction level through a vote by the Sanctions Review Committee, the Securities and Futures Commission, and the Financial Services Commission.

According to Beating , David Sacks, chairman of the U.S. President's Council of Advisors on Science and Technology, has just publicly criticized Dean W. Ball, head of strategy at OpenAI. Ball stated that the performance of Kimi K3, developed by Dark Side of the Moon, is approaching that of top publicly available models in Q1 2026, and suggested that the U.S. government deliberately create regulatory uncertainty to deter regulated companies from using it.

Sacks directly refuted this claim: "Weaponizing regulatory uncertainty as a competitive tool is completely unacceptable. Regulatory decisions must be based on facts, logic, and evidence, not on deliberately creating fear and uncertainty."

Sacks further warned that this underhanded approach of creating doubt to achieve its goals erodes the rule of law in the United States and sets a precedent for future abuses of power against anyone. The current leading closed-source large model labs, which have formed a revenue duopoly, are attempting to use government power to eliminate open-source competition. He called on the majority of other Silicon Valley members who support open competition to come forward and take a stand.

Sacks has repeatedly defended open-source models, arguing that the true bottom line for enterprise security is to retain choice at the model layer rather than relying on a single closed-source vendor.

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