Upbit Hit by $32 Million Solana-Based Hack; CEO Vows Full User Compensation
Upbit, South Korea’s largest cryptocurrency exchange, suffered a major security breach on November 27, 2025, resulting in the unauthorized withdrawal of approximately 44.5 billion KRW (around $32–38 million) in Solana-based tokens. The incident has raised fresh concerns about the security of hot wallets and the resilience of Korea’s digital asset market.
Details of the Upbit Hack
The breach stemmed from abnormal withdrawals detected by Upbit’s security systems, prompting an immediate shutdown of deposits and withdrawals. The exchange swiftly transferred assets to cold wallets to prevent further losses.
Oh Kyung-seok, CEO of Upbit operator Dunamu, assured users that all affected funds would be fully reimbursed:
“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.”
This event mirrors a 2019 Upbit hack, highlighting long-standing vulnerabilities in the use of hot wallets for large-scale operations.
Market Impact and Price Disruptions
The hack significantly impacted the Korean crypto market, particularly tokens in the Solana ecosystem. As arbitrage bots paused in response to the halted withdrawals, Solana-based tokens traded at unusually high premiums on Upbit compared to global exchanges. This price distortion reflected temporary liquidity issues and shaken investor confidence.
Global markets also saw a short-term dip in Solana (SOL) and related assets as news of the breach spread.
Ongoing Investigation and Security Review
Upbit has engaged law enforcement authorities and blockchain security specialists to track and freeze the stolen assets. Early investigations point toward the need for enhanced hot wallet security, prompting renewed discussions among blockchain developers about liquidity management and automated risk controls.
The incident is likely to influence upcoming regulatory discussions in South Korea, potentially leading to:
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Stricter oversight of exchange security practices
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Mandatory hot wallet risk guidelines
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Stronger investor protection frameworks
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Encouragement of industry-wide adoption of cold-storage-first policies
Looking Ahead
As Upbit works to recover stolen funds and fortify its systems, the hack underscores a broader industry challenge: balancing speed and convenience with security. With user compensation guaranteed, the exchange aims to restore trust, but the event serves as a reminder that robust security protocols and coordinated industry-government responses remain essential to safeguarding digital asset markets.
