Upbit hit with $36M Solana hot wallet breach day after $10B Naver deal
Analysis
Price Impact
MedUpbit, a major south korean exchange, suffered a $36 million breach from its solana hot wallet. while the exchange confirmed it will cover all losses and the breach was isolated to a hot wallet, the temporary freeze of all deposits and withdrawals across the platform creates significant uncertainty and illiquidity for users.
Trustworthiness
HighThe information is from cointelegraph, a reputable crypto news source, with direct quotes and confirmation from upbit regarding the breach, the amount, the affected network, and their commitment to cover losses. specific details about the temporary platform-wide freeze are also clearly stated.
Price Direction
BearishThe immediate aftermath of a significant breach, even with a reimbursement promise, typically leads to fud (fear, uncertainty, doubt) among investors. the inability to deposit or withdraw funds from a major exchange creates short-term illiquidity and can prompt users to sell assets if they can, fearing further security issues. this fud is likely to exert downward pressure on sol and potentially other assets on upbit in the short term, despite the long-term positive news of upbit's parent company's acquisition deal and ipo plans.
Time Effect
ShortThe primary impact will be in the immediate days following the breach as the market reacts to the news and upbit works to restore full services. if upbit promptly restores deposits/withdrawals and details the reimbursement process, the market could recover relatively quickly. long-term price movements for sol will likely be driven more by broader market trends and ecosystem developments than by this isolated incident.
Original Article:
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Ezra Reguerra 2 minutes ago Upbit hit with $36M Solana hot wallet breach day after $10B Naver deal The breach occurred as Upbit’s parent company, Dunamu, sealed a $10 billion acquisition deal with Naver and plans an initial public offering in the US. Listen 0:00 17 News COINTELEGRAPH IN YOUR SOCIAL FEED South Korea’s biggest crypto exchange, Upbit, temporarily froze deposits and withdrawals on Thursday after detecting roughly $36 million in unauthorized outflows from a Solana-network hot wallet. In an announcement, the exchange said the suspicious transfers were flagged around 4:42 am local time (7:42 pm UTC), prompting a shutdown of transfer services and a full security review of its supported crypto assets. Upbit confirmed that the compromise was isolated to its hot wallet, highlighting that cold-wallet reserves remained untouched. The exchange moved its remaining assets into cold storage and initiated onchain freezing attempts. The incident puts fresh scrutiny on Dunamu, which had just announced a $10 billion acquisition deal with fintech giant Naver. It also revives memories of Upbit’s 2019 security breach, when the exchange lost nearly $50 million in an attack orchestrated by the North Korean hacking group, Lazarus. 🚨 ALERT: Upbit suspends deposits and withdrawals after $38.5M abnormal outflow on Solana network, reporting the assets were transferred to unknown wallet on Nov 27. Upbit confirms it will cover all losses. pic.twitter.com/28Eu61s1Tf — Cointelegraph (@Cointelegraph) November 27, 2025 Upbit to reimburse user funds lost in the breach Upbit said it has suspended deposits and withdrawals across the platform as a precaution, a measure that will remain in place until it completes its security review. The freeze is not limited to Solana-based assets, as the company works to secure its systems and assess remaining risks. Trading on the platform continues to operate normally, allowing users to buy and sell assets within the exchange. However, users cannot move funds on or off the platform while the review is ongoing. The company also assured users that any balances lost as a result of the security incident will be fully covered by its own reserves, emphasizing that no customer assets will be lost due to the breach. Upbit said no action is required for customers to recover their funds. However, the exchange asked users to stay patient as it conducts a platform-wide audit and works with regulators to finalize the investigation. According to local reports, financial authorities have started on-site inspections to understand the incident. While the exchange assured customers that their funds would be returned, it has not yet given a clear timeline of when the assets will be reimbursed. Cointelegraph reached out to Upbit and Dunamu for comments, but had not received a response by publication. Related: South Korea stablecoin framework stalls as regulators split over banks’ role Security incident hits amid Dunamu’s global expansion plans The incident comes amid an important milestone for Upbit, as its parent company, Dunamu, has struck a $10.3 billion acquisition deal with South Korean search engine platform Naver. According to a Wednesday filing, Naver Financial will acquire Upbit operator Dunamu in a stock-swap deal valued at 15.1 trillion won (about $10.3 billion). Naver will issue 87.5 million new shares to Dunamu shareholders and will subsequently make Dunamu a wholly owned subsidiary. In addition to its acquisition plans, Dunamu also plans to launch an initial public offering (IPO) in the United States following the completion of its merger. Apart from the acquisition and IPO plans, Naver and Dunamu also reportedly plan to invest nearly $7 billion over the next five years to develop an ecosystem for Web3 technologies and artificial intelligence. Magazine: 2026 is the year of pragmatic privacy in crypto: Canton, Zcash and more # Cryptocurrencies # Altcoins # Asia # Business # Security # South Korea # Hackers # Cryptocurrency Exchange # Cybersecurity # Hacks # Upbit # Companies Add reaction