Upbit Confirms Major Solana Security Breach as $36 Million in Crypto Is Stolen

South Korea’s largest cryptocurrency exchange Upbit, has officially confirmed a major security breach involving digital assets on the Solana (SOL) blockchain network. The incident, discovered in the early hours of November 27, resulted in an estimated loss of ₩54 billion (approximately $36-38 million), making it one of the biggest crypto security incidents reported this year in Asia.

According to the exchange, unauthorized activity was detected in its Solana hot wallet when abnormal transactions transferred large amounts of tokens to unidentified external addresses. The affected assets included a wide range of Solana-based tokens such as SOL, USDC, and several popular DeFi and ecosystem assets.

Immediate Action Taken by Upbit

Upon detecting the breach, Upbit acted swiftly to contain the damage. All Solana-related deposits and withdrawals were immediately suspended to prevent any further unauthorized movement of funds. The exchange also transferred remaining digital assets into cold storage for enhanced protection.

Upbit confirmed that blockchain tracking measures were initiated to follow the stolen funds, while coordination with token issuers and security firms helped freeze a portion of the compromised assets. Internal investigations are now underway to determine how attackers gained access to the system.

Reassuring users, the company publicly committed to fully compensating customers from its own reserves. Upbit stated that user funds remain protected and that the exchange would absorb the losses without affecting customer balances.

How the Breach Affects Users and the Market

Although no personal user funds were directly drained, the incident has caused concern among investors about the overall security of centralized crypto exchanges. Hot wallets, which remain connected to the internet, continue to represent one of the most vulnerable parts of crypto infrastructure.

The Solana ecosystem also felt an immediate impact, with increased volatility in token prices following the announcement. Market analysts expect short-term hesitation among retail traders, especially those with assets stored on centralized platforms.

A Wake-Up Call for the Industry

This incident highlights the growing sophistication of cyber attacks targeting cryptocurrency exchanges worldwide. Security experts warn that as digital asset adoption grows, hackers are becoming more organized and persistent.

The breach underscores the urgent need for crypto platforms to adopt stronger wallet management systems, improve internal controls, and increase security transparency. Regulatory bodies in South Korea are also expected to review exchange safety standards, particularly in relation to asset custody and incident reporting.

Upbit has confirmed that it is conducting a full system audit and upgrading its wallet policy to reduce similar risks in the future.

FAQs

Q1: How much money was lost in the Upbit Solana hack?

Approximately ₩54 billion worth of crypto assets, equal to around $36-38 million, were stolen from Upbit’s hot wallet.

Q2: Were customer funds affected?

Upbit has confirmed that customer balances are safe and that the company will cover all losses from internal reserves.

Q3: Which tokens were involved?

Assets on the Solana network were affected, including SOL, USDC, and several ecosystem tokens.

Q4: Is trading on Upbit still available?

Trading continues on other networks, but Solana deposits and withdrawals were temporarily suspended during the investigation.

Q5: What caused the breach?

The exchange has not disclosed full technical details but confirmed unauthorized access to a hot wallet as the source of the incident.

Q6: Should users withdraw funds from exchanges?

Security experts advise users to store long-term assets in private wallets and use exchanges only for active trading.