South Korean broadcaster KBS reports that Binance froze only a fraction of the funds police flagged as linked to the Nov. 27 hack of Upbit, one of the country’s largest crypto exchanges.
Investigators allegedly asked Binance to lock down about 470 million Korean won ($370,000) in Solana tokens tied to the breach. Instead, the exchange ultimately froze roughly $55,000 — about 17% of the requested amount — and did so after a 15-hour delay, according to KBS. Binance told authorities it needed additional verification before acting on the request.
The Upbit hack resulted in unauthorized withdrawals of Solana-based assets worth around $36 million, triggering a police investigation and prompting the exchange to coordinate with multiple platforms to track and freeze the stolen funds.
KBS also cited Cho Jae-woo, director of Hansung University’s Blockchain Research Institute, who emphasized that rapid initial freezes are often crucial for minimizing losses in cyberattacks. He argued that exchanges sometimes invoke litigation risks as an “excuse” to resist such requests and suggested that a global hotline with emergency freeze capabilities could help reduce damage across the industry.
The episode highlights how major centralized exchanges handle real-world requests from foreign law enforcement to freeze assets suspected of being linked to cyberattacks.
An Upbit spokesperson told Cointelegraph they could not comment on the details reported by KBS but noted that local authorities are “actively investigating” in an effort to identify the perpetrators.
“Upbit is working closely with the authorities, and we have additionally asked major global exchanges to freeze any assets detected from the related wallets.”
A Binance spokesperson told Cointelegraph that, as a matter of policy, the exchange cannot comment on specific cases. However, they affirmed Binance’s commitment to “cooperating with relevant authorities and partners wherever appropriate.”
The spokesperson added that Binance handles all law enforcement requests exclusively through an official channel and works closely with agencies worldwide to support investigations into illicit activity.
Upbit said it would provide further updates as they become available.
