South Korea’s largest cryptocurrency exchange is dealing with a major security incident after unauthorized activity drained millions in Solana-based assets. Upbit said abnormal withdrawals appeared on the Solana network early on November 27, triggering an emergency shutdown of deposits and withdrawals.
The event has drawn intense attention because it comes during a critical regulatory period in South Korea and only days after officials increased scrutiny on AML and KYC procedures across major exchanges. Besides the immediate market impact, the breach again raises questions about the security of hot wallets on high-throughput chains such as Solana.
Details of the Solana Hot Wallet Incident
According to Upbit’s incident review, one Solana hot wallet experienced unusual activity around 4:42 a.m. KST. The transfers moved roughly 54 billion Korean won, equal to about $36.8 million, into an unknown external address. The drained assets included a wide range of Solana tokens. These included SOL, USDC, BONK, JUP, ORCA, PYTH, RAY, JTO, TRUMP, RENDER, and several smaller ecosystem tokens.
Upbit responded by freezing all Solana deposits and withdrawals. Additionally, the exchange moved remaining Solana assets into cold wallets to stop further unauthorized transfers.
The company has already secured around 12 billion won in frozen tokens with help from project teams and blockchain analytics firms. The remaining assets are under constant on-chain monitoring as investigators work to trace the funds.
Upbit stressed that the breach affected only one Solana hot wallet. Other networks and core systems continued operating normally. However, a full security review is underway across its entire digital asset infrastructure before services resume.
Broader Context and Industry Reaction
The timing of the attack adds new pressure on Upbit and its parent company, Dunamu. The firm is currently preparing a major stock-swap combination with Naver Financial valued at about $10.3 billion. Hence, the breach has become a focal point for market observers tracking regulatory stability and operational risk in South Korea’s digital asset sector.
This incident also mirrors a previous Upbit breach in late November 2019, when hackers stole 342,000 ETH. Consequently, analysts argue that hot wallets still pose persistent vulnerabilities despite better security standards.
Solana Price Holds Steady Despite Security Shock
Solana’s market performance showed surprising strength even as the hack gained attention. SOL traded near $142, marking a slight daily gain. According to analyst Ali Martinez, Solana’s NUPL chart indicates deeper capitulation over recent weeks.
Source: X
He noted that SOL often forms major bottoms during extended loss phases. The asset recently moved toward the $80–$95 demand range, where past reversals occurred during strong fear cycles.
Moreover, Martinez explained that previous capitulation periods often preceded recoveries toward higher resistance zones. If buyers defend lower levels, SOL could revisit the $110 and $138 regions. The hack did little to change this broader trend, although short-term caution persists.
Source: https://coinpaper.com/12700/upbit-halts-solana-transfers-after-36-8-million-hot-wallet-breach
