- Upbit froze $1.77 million in stolen assets after detecting unusual Solana wallet activity.
- The exchange covered $26.2 million in losses using corporate reserves to protect users.
- Upbit launched a tracking system and reward program to recover stolen funds quickly.
Upbit, South Korea’s largest cryptocurrency exchange, froze assets following a recent platform hack. The company acted as investigations continued into stolen funds and recovery efforts. Dunamu, Upbit’s parent company, reported freezing $1.77 million in compromised assets so far.
The incident forced the exchange into a temporary lockdown. Users could not make deposits or withdrawals while wallet systems underwent a complete upgrade. The unusual activity was first detected through withdrawal patterns on Solana network wallets.
Upbit confirmed it covered all $26.2 million in stolen funds using corporate reserves. No users faced direct financial losses. The stolen assets were TRUMP, Bonk, and other Solana-based assets. The hack had an impact on various ecosystems and is currently regarded as a major security incident in the cryptocurrency industry. Moreover, Upbit faced a major Solana network breach in November and moved fast to protect all user assets through strict security steps.
On-Chain Tracking System Deployed
In response, Upbit deployed an in-house On-chain Tracking Service (OTS). The system monitors every on-chain movement of withdrawn assets continuously. It allows the team to quickly detect suspicious transactions and trace connected wallets.
Once compromised addresses are identified, Upbit blacklists them and coordinates with partner exchanges. These exchanges then freeze the stolen funds immediately. Within the first five hours, the team froze $1.5 million in assets. Offshore exchange collaboration increased this number to $1.77 million.
The exchange also introduced a program to recover stolen funds. White-hat hackers, blockchain analysts, and security researchers can participate. Participants receive a 10% reward of successfully recovered assets. This initiative encourages community cooperation in securing digital assets. South Korea plans to impose no-fault compensation rules on crypto exchanges following the Upbit hack.
Wallet Security Upgrades
Upbit fully restored deposit and withdrawal services on the 6th. The wallet system received significant updates and additional security features. Some highly critical security issues were detected and addressed during the review.
These improvements will ensure that the platform is not compromised by attackers again. The exchange emphasized ongoing monitoring to track and freeze any remaining compromised funds.
Collaboration with Global Exchanges
Upbit continues to work with international exchanges and blockchain communities. Sharing blacklisted addresses ensures stolen funds are frozen quickly worldwide.
The exchange stressed the importance of a cooperative approach to protect virtual asset users. By maintaining vigilance and strong partnerships, Upbit seeks to reduce future security risks.
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