- Binance responds to Upbit hack, freezing only 17% of requested funds.
- Upbit loses ~$30-36M in Solana assets, prompting security overhaul.
- South Korean authorities push for faster global freeze protocols.
On November 27, 2025, Upbit, South Korea’s largest cryptocurrency exchange, suffered a $30-36 million Solana-based asset theft, prompting limited asset freezes by Binance.
The hack raises concerns about exchange security and Binance’s response, impacting confidence in cryptocurrency trading platforms.
Upbit experienced a security breach on November 27, 2025, losing approximately $30-36 million in Solana-based assets. The breach led Dunamu, the exchange’s operator, to bolster their cold storage, increasing it to a 99% cold wallet ratio.
Following the hack, Binance was asked to freeze around 470 million KRW in SOL. They managed to freeze only approximately 80 million KRW, representing 17% of the requested amount. Authorities are scrutinizing Binance’s actions and their timing. A Binance spokesperson commented, “The Binance security and investigation team discovered the incident and took immediate action to assist in freezing relevant transfers to prevent further loss of funds. Therefore, any claims that we did not take timely and effective measures are unfounded and inaccurate.”
The hack has resulted in Solana assets being laundered through over 1,000 wallets. Transactions utilized token bridges and swaps, converting proceeds into Ethereum for increased liquidity, affecting trading operations across exchanges.
The financial implications are significant. Dunamu’s response includes a cold storage overhaul, complying with regulations, while Binance faces pressure from South Korean authorities to enhance global freeze execution to prevent future losses.
Analysts suggest that the current situation may lead to increased scrutiny on crypto exchanges’ security protocols. The spotlight is on exchanges to enhance their response times and ensure better cooperation with international regulatory bodies.
Some experts indicate potential advancements in regulatory frameworks, focusing on technological improvements in wallet security and transaction monitoring. This could set a precedent for more robust coordination between exchanges and law enforcement moving forward.
