Upbit Faces $36M Solana Wallet Breach Post $10B Naver Deal

Key Points

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  Upbit experienced a $36 million breach of its Solana hot wallet.
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  The exchange has suspended services and is conducting a full security audit.
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  User refunds are guaranteed, and cold wallets remain unaffected.

Security Incident and Exchange Response

Upbit, South Korea's largest cryptocurrency exchange, reported a significant security incident on November 27, 2025, involving a breach of its Solana hot wallet. The unauthorized withdrawals amounted to approximately $36 million USD. This event occurred shortly after the announcement of a $10 billion Naver deal. In response to the breach, Upbit has temporarily suspended all transaction services to thoroughly address the security lapse and conduct a comprehensive audit.

Oh Kyung-seok, CEO of Dunamu, the operator of Upbit, has assured users that all affected individuals will receive full refunds. He confirmed that the breach was confined to the exchange's hot wallets, with its cold storage systems remaining secure and unaffected. Security audits are actively underway, and Upbit plans to compensate affected users using its internal reserves.

Market Impact and Regulatory Oversight

The breach had a noticeable impact on the market, leading to minor dips in Solana-based decentralized exchanges (DEXs). The incident saw an acceleration in withdrawals and panic selling as users reacted to the news. Upbit reiterated its commitment to user fund security, emphasizing the integrity of its cold wallets.

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TradingView update on the situation

The Financial Services Commission (FSC) of South Korea is closely monitoring the situation and has urged all cryptocurrency exchanges to enhance their security measures. While no new compliance directives have been issued, the FSC is conducting a review of Upbit's existing security protocols.

Broader Implications for Exchange Security

This incident brings to mind previous security breaches, such as the 2019 ETH wallet breach, highlighting persistent vulnerabilities in centralized exchanges. Discussions among cryptocurrency developers reflect growing concerns about exchange security and a renewed advocacy for greater self-custody among users.

Historical trends demonstrate that even large and established exchanges are susceptible to security threats. As noted by CZ of Binance, the importance of self-custody remains a critical consideration for cryptocurrency users. The potential outcomes of this breach may include a reshaping of regulatory frameworks and a reinforced focus on improving the safety and security of cryptocurrency exchanges.

"We have detected unauthorized withdrawals from our Solana hot wallet this morning. The breach is limited to hot wallet assets, and cold wallets remain secure. We have suspended all deposits and withdrawals as a precaution and are conducting a full security audit. All affected users will be fully refunded." — Oh Kyung-seok, CEO, Dunamu

Historical Data and Security Measures