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Binance, the world’s largest cryptocurrency exchange, has denied allegations of delaying or inadequately responding to requests to freeze funds stolen in the November 27, 2025, Upbit hack. South Korean investigators traced portions of the ~$30-37 million in laundered Solana-based assets to Binance, sparking criticism over the exchange’s actions.
The Upbit Breach
On November 27, hackers exploited Upbit’s Solana hot wallet, draining assets worth 44.5 billion KRW (approximately $30-37 million), including SOL, USDC, BONK, and others. Upbit quickly suspended services, reimbursed users fully from reserves, and enhanced security by moving 99% of assets to cold storage. Authorities suspect North Korea’s Lazarus Group, noting similarities to a 2019 Upbit hack.
Stolen funds were rapidly laundered across thousands of wallets, with some flowing to Binance.
The Binance Controversy
South Korean police requested Binance freeze ~470 million KRW (~$370,000) in linked assets. Reports claim Binance froze only ~80 million KRW (17%) after a 15-hour delay, needing further verification. Media outlets criticized this as insufficient, potentially allowing hackers to move funds.
Binance refuted the claims as “misleading and unfounded,” stating its security teams acted immediately upon detecting suspicious activity and coordinated with authorities. A spokesperson emphasized strict protocols and commitment to cooperation.
Industry Implications
The incident highlights challenges in cross-border asset freezing and rapid laundering tactics. Experts stress the need for faster inter-exchange coordination to mitigate hack fallout.
Moving Forward
Investigations continue into the breach and fund tracing. Both exchanges urge vigilance, with Upbit resuming services after audits. Users are advised to use cold storage and monitor transactions amid ongoing crypto security risks.
