Upbit Freezes $1.77M After $38M Hack as New Tracking System Expands
South Korea's biggest crypto exchange, Upbit, has frozen $1.7 million in assets tied to the recent security breach that ultimately led...
Quick overview
- Upbit, South Korea's largest crypto exchange, has frozen $1.7 million in assets following a security breach that led to a temporary halt in cash withdrawals.
- The breach involved nearly $38 million in Solana-based tokens, but Upbit assured that no customers suffered financial losses as they covered the affected funds using their reserves.
- To enhance security, Upbit launched an On-chain Tracking Service to monitor blockchain transfers and track stolen assets in real time.
- The exchange has joined a Global Recovery Contribution Program to incentivize collaboration in recovering stolen funds, offering a 10% reward for successful identification or freezing of assets.
South Korea’s biggest crypto exchange, Upbit, has frozen $1.7 million in assets tied to the recent security breach that ultimately led the platform to stop users from withdrawing cash and to undergo a complete overhaul of its wallet system. The parent company, Dunamu, says the move is one of several key steps it is taking to help the exchange get back on its feet after a hack of the kind seen in the region this year.
The breach, which focused on wallets on the Solana network, was picked up on when Upbit engineers noticed some pretty unusual withdrawal activity going on. By the time the attackers were caught, they had siphoned nearly $38 million in Solana-based tokens, including TRUMP, Bonk, and a few smaller assets.
Upbit stressed that no customers have lost out financially. The exchange used its own financial reserves to cover the $26.2 million in funds directly affected. The reason, they say, was to prevent a mass sell-off and to keep users feeling secure while the platform was locked down.
New Tracking System Makes Freeze Efforts Move Fast
Upbit quickly responded to the hack by launching its in-house On-chain Tracking Service (OTS) – a system designed to keep an eye on blockchain transfers in real time and track the movement of stolen assets across different networks.
🇰🇷 Upbit Freezes $1.77M After Hack
Following a major hack, South Korean exchange Upbit froze $1.77M in suspicious transfers. Regulators plan to hold crypto exchanges accountable for customer losses, even if the exchange isn’t at fault—similar to banks.
💡 Implication: Increased… pic.twitter.com/Z7hbGVGAle
— 🍇⚡️DAOnysus 🏛️🍷 (@DAOnysusHQ) December 8, 2025
The On-chain Tracking Service is tracking:
- The routes taken by compromised tokens on-chain
- New wallets or suspicious addresses are being linked
- Transfers are getting sent into offshore exchanges that are playing ball
Within the first five hours, the global partners were alerted to freeze $1.5 million in stolen cash – and through continued cooperation, the total got pushed up to $1.7 million. It’s expected to keep climbing as the investigation goes on.
The exchange has been sharing data on blocked wallets with partner platforms to help freeze the funds and stop any attempts to launder them. Upbit says the tech is now running 24/7, flagging any high-risk movement patterns and helping the company to get on top of emerging threats more quickly.
Global Recovery Program Helps More Players
Upbit is now part of a Global Recovery Contribution Program that aims to secure support from white-hat hackers, blockchain researchers, and other exchange operators worldwide. Anyone who helps identify or freeze stolen cash gets 10% of the total amount recovered – it’s a programme designed to get people on the case as quickly as possible.
Upbit restored deposit and withdrawal services on the 6th after the company completed an overhaul of the wallet system and implemented new security safeguards. As they reviewed the system, the engineers also found and fixed a critical vulnerability linked to the problem. The company says they’ll be releasing more information as the investigation rolls on, suggesting that the recovery phase – and what’s happening between exchanges – is a long way from being over yet.
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