Binance Reportedly Freezes Partial Solana Funds in Upbit Hack Probe

• Partial Freeze Details: Binance blocked approximately 80 million Korean won ($55,000) after police requested 470 million won ($370,000) in suspected stolen Solana tokens.

• Delayed Response: The exchange took around 15 hours to act, citing the need for additional verification before complying with the freeze request.

• Hack Impact: The Upbit breach involved unauthorized withdrawals of Solana-based assets worth about $36 million, triggering a police investigation and multi-exchange efforts to secure funds.

Discover how Binance’s limited freeze of Upbit hack funds exposes gaps in global crypto enforcement—explore the implications for exchanges and recovery strategies today.

What Happened in the Binance Upbit Hack Funds Freeze?

Binance Upbit hack funds freeze refers to the recent incident where South Korean authorities requested asset freezes from the global exchange following a major breach at Upbit. On November 27, hackers stole around $36 million in Solana-based assets from Upbit, one of South Korea’s leading crypto platforms. Police identified linked funds on Binance and sought to immobilize approximately 470 million Korean won ($370,000) worth of Solana tokens, but Binance ultimately secured only 17% of that amount after a significant delay.

How Did Binance Respond to the Police Request?

South Korean broadcaster KBS detailed that investigators formally asked Binance to freeze the specified Solana holdings believed to stem from the Upbit hack. The exchange, however, responded after about 15 hours, citing requirements for further verification to ensure compliance with legal standards. In the end, Binance immobilized roughly 80 million Korean won ($55,000), leaving the majority of the requested assets untouched initially. This selective action underscores the complexities exchanges face in processing international law enforcement requests swiftly.

Experts note that such delays can allow funds to move across borders, complicating recovery. Cho Jae-woo, director of Hansung University’s Blockchain Research Institute, emphasized in comments to KBS that immediate freezes are crucial for minimizing hack-related damages. He pointed out that exchanges sometimes invoke potential litigation risks as a reason for hesitation, but advocated for a global hotline among platforms to enable faster emergency actions. Data from similar past incidents, such as the 2022 Ronin Network hack where over $600 million was stolen, shows that rapid cooperation can recover up to 50% more assets when executed within hours.

Binance froze 17% of stolen funds from Upbit. Source: KBS

The Upbit hack has intensified scrutiny on how centralized exchanges handle cross-border probes. Upbit’s security measures, including multi-signature wallets and real-time monitoring, were breached through sophisticated phishing or insider tactics, according to preliminary police findings. As South Korea’s crypto market grows—representing over 5% of global trading volume—such events pressure regulators to enforce stricter standards. The Financial Services Commission in Seoul has already signaled plans for bank-level accountability on exchanges, potentially mandating faster response protocols to foreign authorities.

From a broader perspective, the crypto industry’s reliance on blockchain transparency aids tracking but challenges enforcement due to jurisdictional divides. Blockchain analytics firms like Chainalysis have tracked over $1 billion in illicit funds annually, yet recovery rates hover below 20% without seamless international collaboration. In this case, Upbit’s team has been proactive, coordinating with global platforms to monitor tainted wallets and prevent further dissipation.

Frequently Asked Questions

What Caused the Upbit Hack and How Much Was Stolen?

The Upbit hack on November 27 involved unauthorized access leading to the theft of Solana-based assets valued at approximately $36 million. South Korean police believe it was executed through advanced cyber methods, and the exchange has since enhanced its defenses while assisting investigations to trace the perpetrators.

Why Did Binance Only Freeze a Portion of the Upbit Hack Funds?

Binance processed the freeze request after verifying details to avoid legal risks, resulting in securing only 17% of the targeted $370,000 in Solana tokens. This approach reflects the exchange’s policy of thorough compliance review, which can delay actions but ensures they align with global regulations—essential for maintaining operational integrity in a regulated environment.

Key Takeaways

• Rapid Response Matters: Delays in freezing hacked funds, like the 15-hour wait here, can enable thieves to launder assets further, emphasizing the need for quicker international protocols.
• Cross-Border Challenges: Exchanges must balance verification needs with enforcement urgency, as partial compliance in cases like this Upbit incident reveals gaps in global crypto security cooperation.
• Regulatory Push: South Korea’s post-hack reforms may set precedents, urging exchanges to adopt emergency freeze mechanisms to boost recovery rates and investor confidence.

Conclusion

The Binance Upbit hack funds freeze episode illustrates ongoing hurdles in the crypto ecosystem’s fight against theft, where only partial asset recovery was achieved despite clear leads. With South Korean authorities probing deeper and exchanges like Upbit and Binance committing to enhanced collaboration, future incidents may see improved outcomes through unified global standards. Investors should stay informed on these developments, as stronger enforcement could safeguard the growing $2 trillion crypto market moving forward.