Upbit Hit By $36M Solana Hack On Day Of Naver Merger
Upbit, one of the leading cryptocurrency exchanges in South Korea, temporarily halted deposits and withdrawals after detecting $36 million in unauthorized outflows from a Solana-network hot wallet.
The hack occurred just as Upbit’s parent entity, Dunamu, completed a $10 billion acquisition deal with Naver and announced plans for an IPO in the US.
Upbit Detects Unauthorized Withdrawals
Upbit has announced a temporary freeze on deposits and withdrawals after detecting $36 million in unauthorized outflows from a Solana-network hot wallet. The exchange stated in an official communication that the suspicious transfers were flagged at 4:42 AM local time(7:42 pm UTC), prompting an immediate shutdown of the transfer of services. The exchange also initiated a full security review of its supported crypto assets. The exchange later confirmed the breach was confined to its hot wallet and assured users that its cold wallet reserves were secure.
The hack renewed scrutiny on Upbit’s parent entity, Dunamu. Dunamu had just announced a $10 billion acquisition deal with fintech giant Naver. The breach was reminiscent of Upbit’s 2019 breach, when it lost $50 million in a hack orchestrated by the dreaded Lazarus Group.
“ALERT: Upbit suspends deposits and withdrawals after a $38.5M abnormal outflow on the Solana network, reporting the assets were transferred to an unknown wallet on Nov 27. Upbit confirms it will cover all losses.”
Users To Be Reimbursed
Upbit has clarified that the freeze is not limited to Solana-based assets and will remain in place until the security review is completed. However, trading on the platform is operating normally. Users can buy and sell assets within the exchange, but cannot move the funds off the platform while the security review is ongoing. Upbit has also assured users that any balances lost due to the incident will be fully covered by its reserves. However, it reiterated its position that no customer funds were lost during the breach.
The exchange added that customers do not need to perform any action and asked users to be patient while it completes its security review.
Crypto Exchanges And Security Issues
Trezor CEO Matej Zak believes the security issues surrounding cryptocurrency exchanges are unlikely to be resolved soon. Speaking at the TBD conference, Zak stated,
“Exchanges are obviously massive honeypots for hackers. And since security is a moving target, this problem is not going away.”
He also highlighted the increase in crypto assets lost during security incidents in 2025. Blockchain security company CertiK noted that around $2.47 billion had been stolen in various hacks, scams, and exploits in the first half of 2025.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.