South Korea’s Upbit Suffers $36 Million Crypto Loss Due to Solana Hot-Wallet Breach
In a major security incident, South Korea’s largest cryptocurrency exchange, Upbit, has reported a loss of approximately $36 million due to irregular withdrawals detected on the Solana network. According to a public statement by Oh Kyung-seok, the CEO of Dunamu (Upbit’s parent company), the exchange identified unauthorized transactions linked to a compromised hot-wallet address, triggering immediate action to protect customer assets.
Details of the Incident
The breach, which occurred on November 27, 2025, saw tokens worth 54 billion KRW (around $36 million) transferred to an unknown external wallet. A mix of assets was affected, including popular meme coins like Bonk (BONK) and Pudgy Penguin (PENG), as well as decentralized finance (DeFi) tokens such as Sonic SVM (SONIC) and Jito (JTO). Circle’s USD Coin (USDC) was also targeted in the breach.
Upbit’s Immediate Response and Assurance
To minimize further risks, Upbit swiftly moved remaining funds into cold storage wallets and temporarily halted deposit and withdrawal services. They have also initiated an emergency security review of all related networks and wallet systems to ensure robust protections moving forward.
The exchange reassured its users that all affected funds would be fully reimbursed using Upbit’s own assets, ensuring that customer losses are completely mitigated. Additionally, on-chain freeze attempts are being coordinated with token issuers to recover stolen funds, and a portion of assets, including Solayer (LAYER), has already been successfully frozen.
Ongoing Investigations and Next Steps
While investigations into the root cause of the breach continue, Upbit has pledged to resume deposit and withdrawal services only after completing a comprehensive system-wide security check. This move underscores the platform’s commitment to building trust and ensuring the long-term safety of user funds.
Crypto Security Precautions for Investors
This incident highlights the critical importance of robust security in crypto investing. For individual investors, using reputable hardware wallets, like the Ledger Nano X, can offer an added layer of security by keeping funds offline and out of reach of potential hacks.
Upbit’s unfortunate experience serves as a reminder of the volatile nature of the crypto space and the ongoing need for adopting proactive security measures across the industry.
Conclusion
As the crypto industry evolves, security breaches like this remind investors and institutions alike of the critical importance of robust safeguards. With customer-focused actions and strong safety protocols, Upbit aims to restore confidence in its platform. Stay updated on this developing story as more details emerge about how the exchange plans to combat the aftermath of this breach.
