Hack Details and Suspected Perpetrators
On November 27-28, 2025, Upbit, a leading South Korean cryptocurrency exchange, experienced a significant hack resulting in the loss of approximately $30.6 million USD from its hot wallet. The attack exploited a security vulnerability that allowed for the inference of a private key, impacting tokens such as Solana and Layer, which have been partially frozen on-chain. The Lazarus Group, a notorious North Korean hacker collective, is suspected to be responsible for the breach, with the methodology bearing resemblance to previous attacks attributed to them. Ki Young Ju, CEO of CryptoQuant, indicated that North Korean hackers were likely involved, a sentiment echoed by government suspicions.
In response to the incident, Upbit has suspended all deposits and withdrawals to secure its remaining assets. The exchange has pledged to compensate affected users in full using its own assets. South Korean authorities have launched an investigation to determine if an administrative account was compromised.
"The crypto exchange will fully compensate the entire amount with its own assets so that members' assets don't get affected due to the exploit." — Oh Kyung-seok, CEO, Upbit
The assurance of full compensation has been welcomed by the cryptocurrency community. Officials in South Korea are reportedly enhancing collaboration with exchanges to prevent future security incidents, although specific regulatory policy changes are yet to be announced. Increased scrutiny of exchange security practices is anticipated.
Security Trends and Market Reactions
The Lazarus Group has a history of targeting cryptocurrency exchanges, having successfully executed multiple hacks since 2019. A similar attack on Upbit in the past resulted in a $43 million theft, underscoring their repeated focus on major global cryptocurrency exchanges.
In broader market context, Ethereum (ETH) is currently valued at $3,044.07 with a market capitalization of $367.41 billion. It holds an 11.86% market dominance. Over the past 24 hours, ETH has seen a 0.59% price increase, but a decline of 30.04% over the last 90 days. The 24-hour trading volume stands at $20.17 billion, representing a 7.65% change.
Coincu Research highlights that heightened security measures and stricter regulatory requirements could significantly reshape the cryptocurrency exchange landscape. The research emphasizes the critical need for exchanges to implement advanced security frameworks to effectively mitigate risks and protect digital assets.