Major Security Breach on South Korea’s Largest Crypto Exchange
Upbit, South Korea’s biggest cryptocurrency exchange, has suffered a significant security breach involving approximately 54 billion Korean won (about $36.8 million) in Solana-based assets. The incident occurred early Thursday morning (local time), prompting the exchange to immediately halt all withdrawals and deposits.
Suspicious Activity Detected on the Solana Network
According to Upbit, the security team identified an “abnormal withdrawal” involving multiple cryptocurrencies on the Solana network. Around 4:42 a.m. KST, tokens were unexpectedly transferred to an unidentified external wallet, triggering an emergency lockdown of platform transactions.
The compromised assets include SOL, 2Z, ACS, BONK, DOOD, DRIFT, HUMA, IO, JTO, JUP, LAYER, ME, MEW, MOODENG, ORCA, PENGU, PYTH, RAY, RENDER, SONIC, SOON, TRUMP, USDC and W.
Upbit Moves Assets to Cold Storage for Protection
To prevent further losses, Upbit said it swiftly transferred all platform assets to secure cold wallets. The exchange also successfully froze $8.18 million worth of LAYER tokens linked to the attack. Upbit is now working closely with blockchain projects and local authorities to track, trace, and freeze remaining stolen funds.
User Funds to Be Fully Compensated
In its announcement, Upbit assured customers that all losses will be covered using the exchange’s reserve assets. The company emphasized that users will not face any personal financial impact from the hack.
Investigation Ongoing
Upbit has not yet released technical details about the breach or identified the point of entry used by the attackers. An investigation is underway as the exchange collaborates with security experts and relevant agencies to uncover how the exploit occurred.
