Upbit Withdrawals Halted After a $37M Hack on SOL Assets

South Korea’s biggest crypto exchange just got hit hard. Upbit reported a major security breach early Thursday morning, losing roughly $37 million worth of Solana-based tokens. The platform immediately pulled the plug on all deposits and withdrawals.

What Happened During the Upbit Hack

The trouble started around 4:42 a.m. local time in South Korea. Upbit’s security team spotted something wrong. Someone had drained tokens from the platform’s Solana network wallets. The money moved to an external wallet that nobody at Upbit recognized.

This wasn’t pocket change either. We’re talking about 54 billion Korean won. That’s approximately $36.8 million in today’s exchange rates.

The stolen loot included some heavy hitters in the Solana ecosystem. SOL itself got hit, along with popular tokens like BONK, JUP, ORCA, and PYTH. The full list is extensive. USDC, RENDER, JTO, DRIFT, and several others, including the recent PENGU and TRUMP tokens also disappeared.

How Upbit Responded to the Attack

Credit where it’s due. The exchange moved fast once they caught wind of the breach. They shut down all withdrawal and deposit services across the board. No exceptions.

Then came the security lockdown. Upbit transferred all remaining assets to cold wallets. These offline storage solutions are much harder to crack than hot wallets connected to the internet.

The team also managed to freeze some of the stolen funds. They successfully locked down $8.18 million worth of LAYER tokens. That’s roughly 22% of the total haul recovered already.

Upbit says they’re working with blockchain projects and law enforcement. The goal is simple. Track down and freeze as much of the remaining stolen crypto as possible.

Will Users Lose Money?

Here’s the good news for Upbit customers. The exchange made a clear promise. They will compensate all damages using their reserve assets. Translation? Customer funds are safe. The company is eating this loss themselves.

This isn’t just talk either. Upbit has deep pockets. They’re South Korea’s largest crypto exchange by trading volume. The platform has proven it can handle financial hits before.

Questions Still Unanswered

Many details remain murky. Upbit hasn’t disclosed how hackers breached their systems. Was it a smart contract exploit? An internal security gap? A phishing attack on staff? Nobody knows yet.

The platform also hasn’t revealed which specific wallets got compromised. Or how many user accounts might have been affected indirectly.

What’s clear is that this investigation is far from over. Multiple parties are now involved. Blockchain analysts are tracing the stolen funds. Law enforcement agencies are digging into the attack vector.

History Repeating Itself

This isn’t Upbit’s first rodeo with hackers. Back in November 2019, the exchange lost 342,000 ETH in another major breach. That theft was worth about $50 million at the time but is now valued at over $1 billion.

South Korean authorities eventually linked that 2019 attack to North Korean hacker groups. The Lazarus Group and Andariel got the blame. These state-sponsored hackers are notorious in crypto circles.

Could the same groups be behind this latest Upbit hack? It’s too early to say. But the timing is eerie. Six years to the day, almost.

What Happens Next

Upbit says withdrawals and deposits will resume in stages. But only after they finish a complete security audit. That review isn’t limited to Solana either. They’re checking every network and wallet system on their platform.

The exchange is asking users to stay patient. They’re also requesting help. If anyone spots suspicious activity related to the stolen funds, Upbit wants to hear about it. Tips can go straight to their customer service team.

Meanwhile, crypto security experts are watching closely. This breach highlights ongoing vulnerabilities in exchange infrastructure. Hot wallets remain a weak point. So do the bridges between different blockchain networks.

Exchange security concerns aren’t new. Bitcoin itself has proven remarkably secure, but centralized platforms remain vulnerable targets. Understanding these differences matters for every crypto holder.

For everyday traders, this Upbit hack serves as another reminder. Not your keys, not your coins. Keeping large amounts on exchanges always carries risk. Even the biggest, most reputable platforms can get hit.

The silver lining? Upbit’s quick response and compensation promise show the industry is maturing. Compare this to early exchange hacks where users simply lost everything. Progress, albeit slow and painful.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.