Coinone Files Lawsuit, Seeks Injunction Against FIU Partial Business Suspension

South Korean cryptocurrency exchange Coinone has filed an administrative lawsuit and sought a court injunction to block a partial business suspension ordered by the Financial Intelligence Unit under the Financial Services Commission, the virtual asset industry said.

According to the industry on the 28th, Coinone retained law firm Lee & Ko on the afternoon of the 27th and filed a suit with the Seoul Administrative Court seeking to overturn the FIU’s three-month partial suspension. It also submitted a request to stay enforcement, the industry said.

The FIU held a sanctions review meeting on the 13th and penalized Coinone for violations including a duty to block prohibited transactions and customer identification requirements. The agency ordered a three-month partial suspension from April 29 to July 28 and imposed an administrative fine of 5.2 billion won.

If the court grants the stay, the suspension scheduled to begin on the 29th would be halted until a ruling on the merits. The move mirrors steps taken by Upbit and Bithumb, which have also gone to court over FIU sanctions.

Separately, a court decision is also expected on the 29th on whether to grant Bithumb’s request to suspend enforcement of its partial business suspension. The court is expected to weigh, among other factors, whether Bithumb’s ongoing transaction-blocking measures sufficiently address concerns about harm to the public interest, according to industry officials.