South Korean investigators flag delays as exchanges face scrutiny on cross-border cooperation
The recent Upbit hack, which resulted in unauthorized withdrawals of roughly $36 million in Solana-based assets, has intensified scrutiny on how major global exchanges handle emergency freeze requests from foreign law enforcement. Reports indicate that Binance froze only a fraction of the funds identified by South Korean authorities, prompting renewed debate over industry-wide standards for incident response.
South Korean broadcaster KBS reported that investigators asked Binance to freeze 470 million won (about $370,000) in SOL connected to the hack, but the exchange ultimately locked just $55,000 around 17% of the requested amount after a delay of approximately 15 hours. Binance reportedly cited the need for further verification before acting on the request.
Experts say rapid freezes are critical in preventing stolen funds from being laundered or dispersed across multiple chains. Cho Jae-woo director of the Hansung University Blockchain Research Institute, noted that swift initial action can materially reduce losses, though exchanges often hesitate due to litigation and compliance risks.
The incident highlights the challenges of cross-border law enforcement in crypto as exchanges operate under different jurisdictions with varying legal requirements. Upbit says it continues to work closely with authorities and has asked major global platforms to freeze suspicious assets linked to the breach.
Binance reiterated its policy of responding only through official channels and emphasized its commitment to cooperating with international investigators. The investigation into the Upbit attack remains ongoing, with further updates expected as authorities identify those responsible.
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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.