What Happened to S. Korea's Upbit Crypto Exchange Amid Hacking Incident?
Click to start listening
Synopsis
In a staggering turn of events, South Korea's leading cryptocurrency exchange, Upbit, was hit by a massive hacking attack that resulted in a loss of 54 billion won. The CEO assures customers of full compensation, while the platform temporarily halts services for security reviews.
Key Takeaways
- 54 billion won lost in Upbit hacking incident.
- CEO assures full customer compensation.
- Temporary halt on all deposits and withdrawals.
- Largest breach in Upbit's history, surpassing previous incidents.
- Increased scrutiny expected from financial authorities.
Seoul, Nov 27 (NationPress) South Korea's foremost cryptocurrency platform, Upbit, was the target of a significant hacking incident on Thursday, according to its parent company, Dunamu Inc.
"At approximately 4:42 a.m., we identified that a portion of assets linked to Solana, valued at about 54 billion won (approximately US$36.9 million), was illicitly transferred to an unauthorized wallet address," stated Oh Kyung-seok, CEO of Dunamu, as reported by Yonhap news agency.
"We are committed to compensating the total amount lost using Upbit's assets, ensuring that our customers' holdings remain unaffected," he added.
Customers were alerted at 12:33 p.m. following a joint press briefing conducted with Naver Corp., the portal operator, and its fintech subsidiary, Naver Financial Corp., regarding their merger.
In response, Dunamu announced the temporary suspension of all virtual asset deposits and withdrawals on its platform and is currently undertaking a thorough security evaluation.
Additionally, financial regulatory authorities are said to be preparing for an on-site audit to review the situation.
This breach marks the largest security incident at Upbit in the past six years, following a previous incident on November 27, 2019, when approximately 340,000 Ethereum tokens valued at 58 billion won were unlawfully transferred to an anonymous account.
In related news, the central bank reported on Thursday an increase in its 2025 economic growth forecast for South Korea to 1 percent, attributing this to a rebound in private consumption and robust exports.
The Bank of Korea (BOK) has adjusted its previous forecast of 0.9 percent, issued in August, by an increase of 0.1 percentage point. For 2026, the projection for economic growth has been raised to 1.8 percent, up from an earlier estimate of 1.6 percent, with expectations for a 1.9 percent expansion in 2027.
"The recent trade agreement with the United States and the notable upturn in the global semiconductor market are anticipated to enhance exports and capital investment beyond earlier forecasts," BOK Governor Rhee Chang-yong remarked during a press briefing.
Point of View
I believe that trends in cryptocurrency security are critical for national economic stability. The breach at Upbit serves as a stark reminder of the vulnerabilities in digital finance. It is essential that both authorities and exchanges prioritize robust security measures to protect consumer assets and maintain trust in the financial system.
NationPress
27/11/2025
Frequently Asked Questions
What caused the hacking incident at Upbit?
The incident involved a transfer of assets linked to Solana amounting to 54 billion won to an unauthorized wallet, indicating a significant breach in security protocols.
Will customers be compensated for their losses?
Yes, Upbit's CEO stated that the company plans to cover the total amount lost using its own assets to protect customers' interests.
What security measures is Upbit taking following the attack?
Upbit has temporarily suspended all virtual asset deposits and withdrawals while conducting a comprehensive security review.
How does this incident compare to previous breaches?
This is the largest security breach at Upbit in six years, surpassing the incident in 2019 where 340,000 Ethereum tokens were unlawfully transferred.
What impact might this have on the cryptocurrency market?
Such incidents can lead to increased scrutiny and regulation of cryptocurrency exchanges, potentially affecting market confidence and operations.
