Major South Korean Exchange Moves Assets to Cold Storage as Investigations Begin
South Korea’s largest cryptocurrency exchange, Upbit, has halted all withdrawals and deposits after confirming an early-morning security breach that resulted in the loss of approximately 54 billion KRW ($36.8 million) in digital assets linked to the Solana network.
Abnormal Solana Outflows Trigger Emergency Response
Upbit disclosed that at around 4:42 a.m. local time, the platform detected abnormal withdrawals involving multiple Solana-based tokens routed to an unidentified external wallet. Exchange officials confirmed that a broad set of assets — including SOL, BONK, ORCA, RAY, PYTH, RENDER, USDC and others — were removed without authorization.
The company emphasized that it immediately transferred all user assets to secure cold wallets, a move aimed at preventing additional losses. It also reported successfully freezing $8.18 million in LAYER tokens, with further recovery efforts ongoing in coordination with project teams and authorities.
Security Measures and User Protection Commitments
Upbit assured customers that all losses will be fully covered using the exchange’s reserve assets, stressing that “no user will incur personal financial damage.” This reassurance reflects South Korea’s stringent expectations for investor protection within regulated virtual asset platforms.
The exchange has not yet released details regarding the attack vector, the vulnerable system, or whether the breach was linked to a private key compromise, infrastructure exploit, or third-party integration.
Ongoing Investigation and Industry Impact
Authorities and cybersecurity partners are now working to trace the stolen assets and analyze on-chain activity across the Solana ecosystem. Given the number of tokens affected, experts warn that “multi-asset drains usually point to automated scripts or compromised access credentials.”
As the investigation continues, market participants are watching closely, with many highlighting the need for enhanced security frameworks for exchanges managing multi-chain assets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.