South Korea's Financial Intelligence Unit (FIU) has fined crypto exchange Korbit KRW 2.73 billion (approximately $1.88 million) for multiple anti-money laundering (AML) violations. The penalties follow an inspection conducted from October 16 to 29, 2024, which uncovered about 22,000 breaches, including incomplete Know Your Customer (KYC) processes and unauthorized trades. The FIU identified significant lapses in Korbit's customer verification and transaction controls, with approximately 12,800 cases of improper customer identification and 9,100 instances of transactions occurring without necessary checks. Additionally, Korbit was found to have conducted 19 unreported transfers with overseas virtual asset service providers and failed to assess money laundering risks in 655 NFT-related transactions. In response, the FIU issued an institutional warning to Korbit, a caution to its CEO, and a reprimand to the reporting officer. The sanctions reflect the FIU's commitment to tightening AML oversight in South Korea's crypto market, with further inspections and penalties anticipated to ensure compliance.