Upbit Boosts Cold Storage Ratio to 99% After Solana Wallet Hack

News

Upbit, South Korea’s largest crypto exchange, significantly increases cold storage post-hack, covering losses without user impact.

Upbit Enhances Cold Storage Security Post Hack

Key Points:

Upbit moves 99% of assets to cold storage after hack.
Dunamu covers losses without user impact.
Regulatory standards exceeded by new security measures.

Upbit, South Korea’s largest crypto exchange, announced it will store 99% of user assets in cold storage after a Solana wallet hack.

This move enhances security, aligns with regulations, and maintains user trust amid rising concerns over digital asset safety.

Upbit, South Korea’s largest crypto exchange, has significantly increased the proportion of user assets stored in cold wallets to 99% following a recent hack on a Solana hot-wallet, minimizing hot-wallet exposure. “99% of user assets will be stored in cold wallets.” – Source: Upbit official notice.

Operated by Dunamu Inc., Upbit faces leadership from Song Chi-Hyung and Lee Sirgoo. Actions include covering the hack’s losses by Dunamu’s corporate funds with user balances unaffected.

The decision has critical implications, prioritizing user fund security and aligning with South Korea’s Virtual Asset User Protection Act, which mandates at least 80% cold storage of user deposits.

Maintaining operational efficiency might become a challenge for Upbit due to the substantial shift of assets into cold storage, affecting liquidity management.

Users generally express satisfaction with Upbit’s proactive measures, though concerns regarding withdrawal delays may arise.

Strategic security enhancements position Upbit as an industry leader in compliance, enhancing its reputation and user trust. The move aligns with global practices among major exchanges such as Binance and Coinbase.