South Korea’s largest crypto exchange, Upbit, is moving nearly all customer funds into cold wallets after a late-November hack drained 44.5 billion KRW (around $31 million) from its Solana hot wallet.
Parent company Dunamu announced that more than 99% of assets will now be held offline, exceeding the requirements of the Virtual Asset User Protection Act, which mandates an 80% cold-storage minimum. Upbit already stored 98.33% of assets offline, but the recent breach prompted an even stricter security approach.
The exploit impacted SOL along with ORCA, RAY, and JUP tokens. Using its Automatic Tracking Service, Upbit managed to freeze $1.77 million of the stolen funds, though the remainder appears unrecoverable.
The company assured customers that it will fully absorb the losses from its reserves. Following the incident, Upbit audited all wallets and tightened withdrawal processes, which could slow transactions during peak periods.
CryptoQuant CEO Ki Young Ju noted that temporary withdrawal halts caused altcoin price spikes due to trapped liquidity. With daily trading volumes exceeding $1.1 billion, Upbit’s move has significant market implications.
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