TLDR
- Upbit experienced an unauthorized transfer of $38 million in Solana-based crypto assets.
- The exchange immediately suspended all deposits and withdrawals to protect user funds.
- Affected tokens include JUP, TRUMP, BONK, Double Zero and multiple other Solana assets.
- All Solana and non-Solana assets were moved to a secure cold wallet after the breach.
- Upbit confirmed it will fully cover all user losses using its own company assets.
Upbit confirmed a breach in its Solana wallet system, resulting in the unauthorized transfer of crypto assets worth 54 billion won. The exchange suspended all deposits and withdrawals to prevent further unauthorized transactions and protect customer funds. The Upbit hack affected only Solana-based assets, and the team initiated security and investigation protocols immediately.
Upbit Hack Targets Solana-Based Tokens
The Upbit hack resulted in the transfer of various Solana-based tokens, including JUP, BONK, TRUMP, and Double Zero (2Z), to unknown wallets. The exchange stated that it detected an abnormal outflow and acted immediately to assess the extent of the damage. It said, “We immediately identified the extent of the digital asset outflow caused by the abnormal withdrawals.”
Jupiter (JUP) saw a transfer during the breach, and its value dropped by more than 1% hours after the event. The token was among the Solana-based assets moved to an external address during the Upbit hack. Trading volumes for JUP also declined shortly after the wallet activity paused.
Official Trump (TRUMP) was listed among the affected tokens involved in the unauthorized transfer to external wallets. The Upbit team initiated cold wallet migration to secure affected assets and to limit further exposure. The transfer caused temporary confusion around TRUMP token price and trade executions.
BONK, another Solana token impacted, experienced volatility as it was among those listed in the breach notification. BONK’s price reacted with a quick drop following the asset migration and paused deposit system. BONK activity has been under scrutiny amid Upbit’s new security measures.
Security Freeze Enacted While Investigation Continues
Upbit moved all crypto assets on Solana and other chains into secure cold storage wallets to prevent further unauthorized withdrawals. Blockchain security firms joined the investigation to trace the stolen assets and freeze possible transactions. The exchange has cooperated with authorities for a comprehensive forensic review.
The platform also confirmed partial success in freezing a portion of the stolen funds through on-chain actions. Investigators continue to track wallet movements related to the Upbit hack and assess further risks. Upbit has maintained clear communication regarding recovery and containment steps.
During its review process, Upbit paused all deposit and withdrawal services across the platform for user safety. The company pledged to cover all losses from its own assets and protect user balances. The exchange emphasized that only Solana-based tokens were affected, while other networks remain secure.
Price Reactions and Regulatory Pressure Add Tension
The Solana (SOL) token fell after initial gains, trading at $142.85 with a low of $135.63 and high of $144.47. Other Solana assets such as PENGU and RENDER dropped slightly following the Upbit hack announcement and wallet suspensions. Traders adjusted positions quickly in response to price shifts.
South Korea’s Financial Intelligence Unit recently fined Upbit $25 million for AML and KYC violations, affecting customer onboarding. The FIU also imposed a three-month ban on new registrations, increasing scrutiny on domestic exchanges. The regulatory action intensified right as the Upbit hack unfolded.
The Upbit hack occurred during parent company Dunamu’s acquisition process with Naver Financial, raising timing concerns in the crypto community. Industry members have voiced concerns over internal security standards across exchanges. South Korea’s regulators are reviewing multiple exchanges for compliance and may issue further sanctions.
Authorities warned several platforms could face suspensions of deposit and withdrawal services pending ongoing audits. Investigators confirmed the Upbit hack was isolated to the Solana network, with no signs of similar activity on other blockchains. The exchange has not provided a timeline for resuming services but stated that checks are ongoing.
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