Binance Refutes Claims of Slow Action After Upbit Solana Wallet Hack

TLDR

• Binance has denied accusations of a delayed response to the recent Upbit Solana wallet hack.
• The exchange stated that its security teams acted immediately to freeze funds and assist authorities.
• South Korean investigators claimed only 17 percent of the flagged assets were frozen by Binance.
• Binance explained that further verification was needed before freezing the full amount requested.
• Upbit lost approximately 44.5 billion won and has moved 99 percent of assets into cold storage.

Binance has denied allegations that it failed to act quickly after hackers attacked Upbit’s Solana hot wallet last month. The exchange claimed its teams moved fast to freeze funds and support law enforcement from the outset. South Korean authorities earlier suggested Binance froze only a portion of the stolen funds linked to the breach.

Binance Denies Delay Allegations

Binance firmly rejected suggestions of slow or partial cooperation during the response to the Upbit security breach. A spokesperson said the claims are “unsubstantiated and inaccurate” and do not reflect Binance’s actions. “Binance’s security and investigations teams identified the incident and immediately took action,” the spokesperson confirmed.

According to Binance, it has maintained active engagement with law enforcement and other relevant organizations since the event. The exchange stressed it took steps to freeze transfers and monitor hacker activity across accounts. “We continue to monitor the situation closely and provide support as needed,” the spokesperson added.

Binance insisted it acted in full compliance with procedures and prioritizes the protection of user assets at all times. The statement came in response to local media reports quoting South Korean investigators. Those reports suggested Binance froze only 17% of the funds flagged by authorities.

South Korean Authorities Report Partial Freezing

Local police and investigators reportedly asked Binance to freeze 470 million won worth of Solana tokens after the breach. Officials claimed that hackers moved the tokens to Binance service wallets soon after the incident. Only 80 million won of that amount was ultimately frozen, based on Korean media sources.

Authorities stated that Binance required additional verification before freezing more of the flagged assets. Investigators said hackers quickly spread the stolen assets across thousands of wallets using advanced laundering methods. These methods included chain hopping, token swapping, and cross-chain bridges to hide transaction paths.

South Korean officials alleged that the rapid laundering efforts obstructed further freezing attempts. Binance maintained that it followed verification procedures required to avoid wrongful account freezes. The exchange denied delaying its actions or limiting cooperation with authorities.

Upbit Strengthens Security Measures

Following the breach, Upbit operator Dunamu confirmed it will now store 99% of customer assets in cold wallets. The company said this move will eliminate hot wallet exposure and exceed the country’s 80% legal requirement. Dunamu accelerated the upgrade to its storage model after the incident.

At the end of October, Upbit already held 98.33% of assets offline, the highest rate among domestic exchanges. After the hack, Dunamu began shifting nearly all funds into secure cold storage. This transition aims to reduce any risks linked to online wallets.

Upbit lost 44.5 billion won, roughly $30 million, when hackers accessed its Solana hot wallet. The breach occurred on November 27 and triggered a swift security overhaul. Investigators suspect the funds were dispersed quickly to complicate tracking efforts.

Hackers Allegedly Linked to Lazarus Group

Early intelligence assessments reportedly linked the attack to North Korea’s Lazarus Group. Investigators in South Korea are still reviewing the breach and analyzing fund movements. The group has a history of targeting exchanges to fund illicit operations.

Security analysts reported the use of complex laundering tactics to obscure the trail. These tactics delayed recovery efforts and forced exchanges to increase monitoring. Authorities confirmed that multiple wallets and tokens were used to spread the stolen assets.

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