TLDR
- Upbit lost 54B KRW ($37M) in Solana-based tokens due to abnormal outflow.
- Hack included 20+ tokens such as BONK, JUP, TRUMP, and USDC.
- The exchange has frozen $8.18M of stolen LAYER tokens.
- Upbit confirmed all losses will be covered with user funds unaffected.
Upbit confirmed on November 26 that it experienced an abnormal withdrawal of Solana-based assets totaling approximately $37 million. The unauthorized transaction occurred around 4:42 a.m. local time and was quickly flagged by the platform’s monitoring systems.
The exchange identified that the assets were transferred to an unknown external wallet. As a precautionary measure, Upbit suspended all deposits and withdrawals on the Solana network to prevent additional unauthorized activity.
Tokens Affected Include TRUMP, BONK, JUP, and More
The stolen funds involved a wide range of tokens from the Solana ecosystem. These included SOL, TRUMP, BONK, JUP, USDC, ORCA, RAY, ACS, PYTH, LAYER, and over a dozen others.
Upbit stated, “A portion of the assets were moved to a wallet that is not recognized by our platform, prompting an immediate security response.” The exact point of entry used by the attacker has not yet been disclosed.
Upbit also confirmed that $8.18 million worth of LAYER tokens have already been frozen. The exchange is working with projects and authorities to trace and freeze the remaining stolen tokens.
User Funds to Be Fully Covered by Exchange Reserves
The exchange assured that all user assets remain safe and unaffected. According to its official statement, any losses will be fully covered using the platform’s reserve funds.
“We have moved all assets into cold wallets and initiated necessary steps to safeguard remaining tokens,” said Upbit in a statement.
This reassurance comes amid increased scrutiny of centralized exchanges following similar incidents in the past. Upbit has not yet shared the method used by the attacker but is continuing investigations with relevant agencies.
Security Response and Ongoing Investigation
Following the breach, Upbit implemented immediate security protocols and enhanced monitoring. It has coordinated with token issuers and blockchain security partners to track down the stolen funds.
The platform emphasized that additional updates will be shared as investigations proceed. No timeline has been given for the full resumption of Solana-related transactions on the platform.
Upbit is one of the largest cryptocurrency exchanges in Asia and is operated by Dunamu. The company has experienced previous security events, but has since reinforced its systems to handle threats more effectively.
The exchange confirmed that only platform reserves were affected, not individual accounts. “Users will not bear any losses due to this incident,” the company reiterated in its latest communication.
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