Particle.news
Download on the App Store

Upbit to Move Over 99% of Assets to Cold Storage After $31 Million Solana Hack

The exchange says it will absorb the theft from company reserves to protect users.

Overview

  • Hot-wallet balances will be cut below 1%, surpassing South Korea’s 80% cold-storage requirement and typical global exchange practices.
  • The Nov. 27 breach drained about 44.5 billion KRW from Solana hot wallets across roughly two dozen tokens in under an hour.
  • Upbit reports it froze about $1.77 million of the stolen funds through its on-chain tracking system.
  • The company says it has overhauled its wallet infrastructure and is prioritizing security controls following the incident.
  • Analysts warn that heavier reliance on cold storage could slow withdrawals and widen Korea’s “Kimchi premium” during volatility, though Upbit expects only minimal delays in extreme conditions.