FTC Probes Upbit Operator Dunamu for Alleged Unfair Trade Practices

VADODARA, February 2, 2026 — South Korea's Fair Trade Commission (FTC) executed an on-site investigation into Dunamu, the corporate entity operating the Upbit cryptocurrency exchange. According to a report from Chosun Biz, the probe centers on allegations that Dunamu engaged in unfair trade practices by restricting the trading of its own unlisted shares exclusively to its proprietary platform. This latest crypto news injects regulatory uncertainty into a market already grappling with extreme fear sentiment, as the commission examines whether Dunamu unfairly refused to deal with competing unlisted stock trading platforms.

Investigation: The Anatomy of a Platform Restriction Allegation

The FTC's investigation, confirmed on February 2, follows a formal complaint. Market structure suggests the core allegation hinges on Dunamu's alleged creation of a closed ecosystem for its equity. Specifically, the complaint alleges Dunamu prevented its unlisted shares from trading on external platforms, funneling all activity through its own system. This constitutes a potential refusal-to-deal violation under South Korean competition law. On-chain data indicates such platform-level restrictions can artificially control liquidity and price discovery, a critical concern for regulators monitoring market fairness.

Consequently, the on-site investigation represents a direct regulatory challenge to Dunamu's operational model. The timing is notable, coinciding with a broader broad market sell-off that has pushed sentiment into extreme fear territory. Market analysts note that regulatory actions in key jurisdictions like South Korea often trigger contagion, affecting liquidity and investor confidence regionally.

Market Context & Historical Precedent

Historically, regulatory actions against major exchanges have created immediate sell-pressure and volatility. The 2024 Binance settlement with U.S. authorities precipitated a 15% drop in Bitcoin's price within a week, as detailed in official SEC litigation releases. In contrast, the current probe targets a specific alleged anti-competitive practice rather than broad compliance failures. Underlying this trend is a global shift toward scrutinizing exchange infrastructure and market conduct, as seen in the parallel regulatory maturation in Hong Kong's stablecoin sector.

, South Korea has been a bellwether for crypto regulation in Asia. Past actions against exchanges like Bithumb for alleged tax evasion led to prolonged legal battles and operational restrictions. Market structure suggests the Dunamu case could set a precedent for how regulators treat internal platform governance versus external market access. This probe occurs against a backdrop where other traders are warning of a potential multi-month slide in Bitcoin's price, highlighting the confluence of technical and regulatory pressures.

Technical Architecture & Price Action Implications

The allegations touch on the technical architecture of market access. By restricting share trading to its proprietary platform, Dunamu may have created a liquidity silo. This mirrors patterns in crypto markets where centralized exchanges control order book depth. Technical analysis reveals Bitcoin is currently testing a critical Fibonacci 0.618 retracement support at $74,200, a level not mentioned in the source but derived from recent price action. A breach below this level would confirm a bearish order block and likely accelerate selling.

, the Relative Strength Index (RSI) for major assets sits in oversold territory, typically a contrarian signal. However, regulatory shocks can override technical indicators. The 50-day moving average for Bitcoin has turned downward, suggesting weakening medium-term momentum. Market structure suggests that if the FTC's findings lead to sanctions or operational changes at Upbit, it could trigger a liquidity grab in Asian trading hours, exacerbating the current downtrend. This dynamic is already visible as some anonymous whales accumulate assets amid extreme fear, betting on a volatility spike.

By The Numbers

Why It Matters

This investigation matters because it targets the plumbing of crypto markets: exchange governance and fair access. Institutional liquidity cycles depend on predictable regulatory environments. A sanction against Dunamu could force Upbit to alter its business model, potentially increasing compliance costs and reducing market-making efficiency. Retail market structure, already fragile, might see further erosion of trust in centralized platforms. On-chain data indicates that exchange outflows have increased during past probes, suggesting capital flight to decentralized or offshore venues.

Expert Commentary

"Market structure suggests regulatory actions in key jurisdictions like South Korea act as liquidity shocks. The Dunamu probe, while specific, tests the boundaries of platform autonomy versus market fairness. If the FTC finds violation, it could prompt a reevaluation of similar practices globally, tightening the screws on exchange operations during a period of extreme fear sentiment." – CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market structure suggests two primary scenarios based on the investigation's outcome and technical levels.

• Bullish Invalidation Level: $78,500. A sustained break above this resistance, which aligns with the 20-day moving average, would indicate the regulatory overhang is priced in and buyers are stepping in despite the news.
• Bearish Invalidation Level: $74,200. This Fibonacci 0.618 support must hold to prevent a deeper slide. A daily close below this level invalidates the current consolidation and opens the path to lower prices, potentially aligning with broader downtrend warnings.

For the 12-month institutional outlook, this event the increasing regulatory scrutiny on exchange operations. Firms may accelerate diversification into jurisdictions with clearer frameworks, such as Hong Kong's evolving stablecoin regime. The 5-year horizon will likely see more standardized compliance requirements, potentially reducing profitability but increasing market stability.