Upbit Hack Puts Binance’s Response to Emergency Freeze Requests at Risk

TLDR

• Binance froze only a portion of requested funds linked to the Upbit hack.
• Investigators asked Binance to freeze $370,000 in Solana assets after Upbit hack.
• Binance delayed freezing assets by 15 hours, citing the need for verification.
• Rapid freezes are crucial to limit damage from cryptocurrency exchange hacks.

A recent hack of South Korea’s Upbit exchange has drawn attention to Binance’s emergency freeze policy. The incident, which took place on November 27, 2025, involved unauthorized withdrawals of Solana-based assets worth approximately $36 million. Following the hack, police requested Binance to freeze a portion of funds believed to be linked to the stolen assets. However, Binance’s response has raised concerns over the effectiveness and timeliness of its emergency freeze procedures.

Police Request for Asset Freeze

According to reports by South Korean broadcaster KBS, investigators requested Binance to freeze around 470 million Korean won ($370,000) worth of Solana (SOL) tokens. These funds were believed to be connected to the hack on Upbit.

Binance responded to the request by freezing only about $55,000, or roughly 17% of the requested amount. This action was taken after a delay of 15 hours, which Binance attributed to the need for additional verification. The delay has led to questions about the exchange’s process for responding to asset freeze requests from law enforcement.

Binance’s Response to Law Enforcement Requests

In a statement, a Binance spokesperson clarified that the exchange responds to law enforcement requests exclusively through official channels. The spokesperson confirmed Binance’s commitment to cooperating with relevant authorities, noting that it works closely with global agencies to assist investigations into illicit activities. However, Binance did not comment specifically on the details of the Upbit hack or the police request in question, citing company policy.

The delay in freezing assets has brought Binance’s emergency freeze policies under scrutiny. Experts argue that in cases involving stolen cryptocurrency, a quick response is essential to prevent further damage. Cho Jae-woo, director of Hansung University’s Blockchain Research Institute, emphasized the importance of rapid asset freezes in limiting the financial impact of hacks. He suggested that exchanges should establish a global hotline to facilitate immediate action in these situations.

Upbit’s Efforts to Track Stolen Funds

Following the hack, Upbit has worked closely with local authorities to trace and recover the stolen funds. A spokesperson from the exchange confirmed that law enforcement is actively investigating the incident. Upbit also reached out to major global exchanges, including Binance, to request the freezing of any assets linked to the attack. Despite the setback in Binance’s response, Upbit remains focused on tracking down the attackers and recovering the stolen assets.

In an effort to prevent further incidents, Upbit has also implemented additional security measures to protect user funds. The exchange continues to collaborate with global exchanges and law enforcement agencies to ensure that any stolen funds are promptly frozen and returned.

The Need for Global Cooperation

This incident underscores the challenges that centralized cryptocurrency exchanges face when responding to asset freeze requests from foreign law enforcement agencies. While exchanges are generally cautious about freezing assets due to legal and litigation risks, rapid cooperation is often necessary to mitigate the effects of hacks.

Experts have called for clearer and more streamlined procedures between exchanges and law enforcement to facilitate faster freezes of suspected stolen assets. A global emergency freeze hotline, as suggested by Cho Jae-woo, could play a key role in reducing delays and ensuring that stolen cryptocurrency is quickly contained.

As the investigation continues, the response from Binance, as well as other exchanges, will likely be closely monitored. The Upbit hack highlights the critical need for efficient and timely responses to minimize losses from cybersecurity incidents in the cryptocurrency space.

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