South Korea’s largest exchange Upbit has temporarily suspended withdrawals after attackers stole roughly $37 million in Solana-based assets from its hot wallets.
Key Takeaways:
- Upbit detected unauthorized transfers from a hot wallet holding Solana (SOL) tokens and immediately halted withdrawals to contain the incident.
- Blockchain trackers and on-chain forensic feeds estimate the loss at about $37 million in SOL and Solana-ecosystem tokens; Upbit has not indicated any losses from cold storage.
- Market reaction has been modest so far, with SOL and major cryptocurrencies posting only limited price moves as of the latest trading data.
Earlier today, Upbit flagged irregular outgoing transfers from one of its hot wallets holding Solana-chain assets and responded by pausing withdrawals, according to reporting by The Block. According to a post on X (formerly Twitter) from Lookonchain, the initial on-chain tracing and estimates put the value moved at about $37 million. Upbit’s decision to halt withdrawals appears aimed at preventing further outflows and giving the exchange time to coordinate with blockchain forensic teams and law enforcement while it investigates the breach.
At the time of writing Upbit had not published a detailed public post-mortem. Meanwhile, crypto news outlets like The Block cited exchange sources and on-chain trackers for the $37 million figure. Blockchain explorers and analytics platforms are monitoring the addresses involved to follow any mixing or token swaps that could attempt to launder the proceeds. There are no confirmed reports that Upbit’s cold-storage reserves were affected.
Bitcoin and Ethereum Hold Steady Amid Upbit Hack
Despite the $37 million Solana hot-wallet being compromised at Upbit, broader crypto markets have remained relatively stable. As of this writing (10:30AM UTC), Bitcoin (BTC) is trading around $91,360.82, showing a 4.4% gain over the past 24 hours, while Ethereum (ETH) is also showing positive price momentum as it sits at approximately $3,024.76, up 3.9% in the last 24 hours.
The incident has so far not triggered a large-scale sell-off in top cryptocurrencies, with market participants largely viewing the hack as an isolated exchange issue. Analysts note that while Solana-related tokens may experience short-term volatility, BTC and ETH have shown resilience due to their broader market depth and high liquidity. Traders are advised to monitor for potential ripple effects if stolen funds are moved through decentralized or centralized exchanges.
Incident Underscores Persistent Custodial Risks
A hot-wallet breach of this scale underscores ongoing custodial risk for centralized crypto exchanges and highlights the difference between hot and cold storage for holding user assets. For users, the event is a reminder about crypto wallet hygiene and the limits of relying solely on custodial platforms for custody. For markets, the key risks to watch are whether stolen funds are swapped on-chain into other assets, whether those swaps hit centralized exchanges, and how quickly Upbit can restore normal withdrawal services without further contagion.
What’s Next?
Upbit’s priority will be to trace the stolen funds, work with blockchain forensics and regulators, and restore withdrawal services once it is confident user assets are secure. Traders should watch on-chain activity from the addresses implicated and monitor liquidity and spreads for SOL pairs in the coming hours. Exchanges and users should expect renewed scrutiny from regulators and a possible re-emphasis on custodial reserve disclosures and hot-wallet controls across the industry.
Summary
Upbit halted withdrawals after about $37 million in Solana assets were moved from a hot wallet; the exchange is coordinating with forensic teams and regulators while markets remain relatively calm.
