Upbit Faces $32 Million Crypto Hack, CEO Pledges Full Compensation

South Korea’s largest crypto exchange, Upbit, suffered a hack resulting in approximately 44.5 billion KRW ($32-38 million) in stolen Solana-based tokens. This breach occurred on November 27, 2025, echoing a similar incident in 2019.

The hack involved Upbit, operated by Dunamu, with CEO Oh Kyung-seok pledging to cover all user losses. Key actions included transferring assets to cold wallets and halting deposits and withdrawals to prevent further damage. Oh Kyung-seok stated, “We immediately identified the extent of the digital asset outflow caused by the abnormal withdrawals and will cover the entire amount with Upbit assets to ensure no damage to members’ assets.”

The breach affected confidence in the Korean crypto markets, leading Solana-based tokens to trade at substantial premiums on Upbit. Market disruptions were exacerbated by halted arbitrage bots, causing price divergences from global markets.

In the financial domain, the incident sparked a drop in Solana and related tokens’ prices, reflecting reduced investor confidence. Upbit engaged law enforcement and blockchain security teams to recover and freeze stolen assets.

Investigations focus on enhancing hot wallet security following the breach. Developer discussions emphasize the need for improved liquidity management. Historical comparisons to the 2019 hack highlight persistent vulnerabilities.

Potential outcomes include regulatory reevaluations, technological upgrades, and enhanced investor protections. These developments stress the importance of robust security protocols and collaborative efforts between exchanges and authorities.