Upbit freezes all transactions after unauthorized withdrawal of 38.5 million dollars in Solana

Source: Yellow Original Title: Upbit freezes all transactions after unauthorized withdrawal of 38.5 million dollars in Solana

Original Link: Upbit, the largest cryptocurrency exchange in South Korea, froze all user deposits and withdrawals on November 27 after unauthorized transfers of assets totaling approximately $38.5 million. The breach affected multiple tokens operating on the Solana blockchain, triggering immediate security protocols and a comprehensive system review.

What happened: unauthorized transfer

The CEO of Dunamu, Oh Kyung-seok, who operates Upbit, revealed that anomalous withdrawals occurred at 04:42 KST through the Solana network. The unauthorized transfers included a variety of tokens from the ecosystem: SOL, USDC, BONK, etc.

The blockchain security firm PeckShield identified the compromise minutes before Upbit's official announcement, informing via social media X that the exchange's wallets had been breached.

The firm initially estimated the losses at 36 million dollars before Upbit's formal disclosure. After detection, Upbit transferred the remaining funds from the affected wallets to cold storage and suspended all transaction services on its platform.

The exchange reported that it managed to freeze on-chain Solaire tokens worth 12 billion won. Upbit stated that it has coordinated with the project teams and associated institutions to freeze additional stolen assets. The company confirmed that customers will not incur losses from the incident and committed to covering the full amount with internal reserves, maintaining that user account balances will not be affected.

Why it matters: persistent vulnerability

The gap highlights the persistent security challenges faced by digital asset platforms despite advancements in protective measures. According to data from PeckShield, approximately 20 major exploits were recorded in September alone, resulting in losses of 127 million dollars, a decrease of 22% from the 163 million in August, but still representing substantial damage to the industry. Notable incidents include the 44 million dollar exploit of UXLINK, which involved the manipulation of a multi-signature wallet, and the loss of 41.5 million dollars from SwissBorg through a compromised Solana staking provider.

The pattern goes beyond isolated incidents.

Balancer, a decentralized finance platform, lost over 128 million dollars to hackers on November 3 in one of the most significant breaches of the quarter. The on-chain security provider Hacken reported that by the middle of this year, cryptocurrency theft had already surpassed 3.1 billion dollars, exceeding the total annual amount for 2024.

The rising figures underscore systemic vulnerabilities in the digital asset infrastructure, as trading volumes and institutional participation continue to expand.

Upbit has launched a comprehensive security audit that extends beyond the Solana network, with plans to gradually restore services after the system checks are completed.