Upbit’s having a really bad day. South Korea’s biggest crypto exchange just suspended all deposits and withdrawals after hackers drained roughly $36.8 million from its Solana hot wallet early Thursday morning.
The exchange detected suspicious transactions and immediately shut everything down. At least 24 different Solana-based tokens got stolen, including SOL, USDC, Bonk, Layer, and Jupiter. Upbit CEO apologized and said they’re prioritizing protecting user assets.
Here’s the thing, though. This might not be a Solana protocol issue; it looks more like Upbit’s wallet infrastructure got compromised. That’s actually worse in some ways because it means the exchange’s security failed.
Upbit’s promising to cover all losses from their own funds, which is good news for users. They’ve already managed to freeze about $8 million worth of LAYER tokens, and they’re working with other projects to freeze more. All remaining assets got moved to cold wallets while they audit everything.
The timing couldn’t be worse for Upbit. They just paid a 35.2 billion won penalty for anti-money laundering violations earlier this month. Plus, they’re planning to merge with tech giant Naver and eventually go public in the US. This breach is definitely going to complicate those plans and bring more regulatory heat.
Conclusion
Upbit’s $36.8 million breach highlights persistent security vulnerabilities at major exchanges, potentially delaying its IPO ambitions while intensifying regulatory scrutiny in South Korea’s tightly monitored cryptocurrency market.
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