Crypto exchange halts withdrawals after $37 million Solana hack, which affected 24 tokens.
South Korean cryptocurrency exchange Upbit confirmed a security breach on Thursday, resulting in the loss of approximately $37 million in Solana-based tokens.
This is Upbit’s first significant security incident since November 2019, when hackers reportedly linked to North Korea stole around 58 billion Korean won in digital assets. Following the latest breach, the exchange halted all crypto deposits and withdrawals.
Confirms Unauthorized Transfer
Oh Kyoung-suk, CEO of Dunamu, Upbit’s parent company, confirmed that around 4:42 a.m., roughly 44.5 billion Korean won in Solana-based assets were moved to an unauthorized wallet.
He said the exchange immediately suspended deposits and withdrawals and launched a comprehensive investigation to protect customer funds.
Oh added that Upbit will cover all losses from its own reserves, ensuring that users are not financially affected.
The breach reportedly involved 24 digital assets, including Solana and Official Trump tokens. In response, Upbit moved all remaining assets to secure cold wallets and notified financial regulators and the Korea Internet & Security Agency (KISA).
First Major Breach Since 2019
Upbit is among Asia’s largest crypto exchanges. The incident marks Upbit’s first major hack since November 27, 2019, when 342,000 Ethereum were stolen by groups linked to North Korea, including Lazarus Group.
The latest breach coincides with the sixth anniversary of that attack and comes just after Dunamu announced a merger with Naver Financial, with the merger ceremony held on the same day, fueling speculation of possible North Korean involvement.
Local experts note that Upbit’s security standards exceed those of typical South Korean financial institutions, suggesting the attack was carried out by a highly sophisticated group.
Market Impact
Despite the breach, Solana (SOL) price showed little negative reaction. Over the past few hours, SOL dipped 1.2% and is currently trading at around $142.6. Over the past 24 hours, SOL has risen 3.62%. Solana-based tokens like RENDER, JUP, BONK, and PENGU each dropped more than 1% within a few hours after the incident.
Why This Matters
The incident underscores the ongoing risks of hot-wallet custody even for major exchanges and highlights the importance of robust security measures and regulatory oversight in crypto markets.
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