- Upbit faces a major Solana network breach and moves fast to protect all user assets through strict security steps.
- The exchange freezes part of the stolen tokens on chain and continues to trace the remaining funds across networks.
- The hack places added pressure on Upbit as its parent company considers a large merger linked to public listing plans.
South Korea’s largest crypto exchange Upbit confirmed a significant security breach on the Solana network. The incident involved unauthorized transfers worth about 54 billion won, equal to roughly $36 million. The outflow occurred early Thursday and affected several Solana-based assets.
Exchange Moves Quickly After Detecting Abnormal Transfers
Upbit detected irregular activity around 4:42am on Nov. 27. The platform then halted deposits and withdrawals to protect user funds. The withdrawn assets included SOL, USDC and several smaller Solana ecosystem tokens. The exchange reported that the transfers went to an unidentified external wallet.
The company assessed the extent of the outflow soon after the halt. It then confirmed that it would absorb the entire loss using its own reserves. The pledge aimed to reassure customers that their balances would remain unaffected.
Upbit Strengthens Security and Shifts Funds to Cold Storage
Upbit responded by securing its infrastructure. It shifted all assets to cold wallets to limit any further unauthorized access. This step aligned with earlier responses during past incidents . The exchange then launched a broad security inspection across its systems.
The review extended beyond the Solana network. The company initiated a full evaluation of its digital asset management framework. This approach aimed to ensure the stability of all deposit and withdrawal channels before reopening them in phases.
Exchange Freezes Part of the Stolen Tokens On-Chain
Upbit also activated on-chain defense measures. It began working with relevant projects and institutions to track the stolen assets. Early efforts led to the freezing of about 12 billion won worth of Solaire tokens. The company continues to pursue further freezes where possible.
Authorities and regulators are expected to engage soon. The scale of the incident and its potential links to organized cybercrime could draw broader investigation. Upbit has already started preparations to cooperate with law enforcement.
Breach Occurs During Major Corporate Developments
The hack arrived during a crucial moment for Upbit’s parent company Dunamu. Reports indicate that Naver is considering a multibillion-dollar stock-swap merger to acquire Dunamu. The proposal was expected to reach both companies’ boards on Nov. 26. The deal could support Upbit’s long-term goal of a potential Nasdaq listing.
The timing adds pressure on the exchange. The company now faces the dual task of restoring full service and managing growing public attention around its future plans.
