Upbit Loses $38 Million in Major Solana Hack, Triggers Immediate Regulatory Inspection.

• Upbit suffers a significant security breach, with hackers siphoning $30.43 million from Solana hot wallets.

• The Financial Supervisory Service’s Virtual Asset Supervision Bureau has deployed an on-site investigation team to Upbit’s headquarters.

Upbit Updates Loss Figures After Hack Incident.

South Korea’s largest cryptocurrency exchange, Upbit, has revised the scale of its Solana-related losses following this week’s security incident. The company now estimates that approximately 44.5 billion KRW, or about $30.43 million, was siphoned from its Solana hot wallets during the early hours of November 27.

In addition, around 2.3 billion KRW, equivalent to roughly $1.57 million in Solana-linked assets, has been successfully frozen as part of the exchange’s on-chain response efforts. Upbit confirmed that the abnormal outflow occurred at 4:42 am KST and involved Solana ecosystem tokens, including SOL, USDC, and several smaller assets.

Once unusual withdrawal patterns were detected, the exchange halted deposits and withdrawals for the affected tokens and immediately initiated a full-scale internal investigation.

Regulatory Authorities Launch On-Site Inspection

In response to the breach, the Financial Supervisory Service’s Virtual Asset Supervision Bureau has deployed an on-site investigation team to Upbit’s headquarters. The inspection began immediately and is expected to continue until next Friday. The regulator is examining the incident’s circumstances, the exchange’s security protocols, and the effectiveness of its emergency response measures.

This marks one of the most urgent regulatory interventions in South Korea’s crypto sector this year, reflecting heightened scrutiny after a series of digital asset security failures across the region.

Solana Tokens Surge on Upbit as Trading Imbalance Emerges

Due to Upbit’s suspension of deposits and withdrawals, several Solana-based tokens have experienced sharp price distortions on the exchange. The inability to arbitrage led to premiums spiking well above global market averages. For example, ORCA surged to about 3,410 KRW, or approximately $2.33, creating a local premium of more than 25% compared to major international markets.

Market watchers noted that such surges typically occur when liquidity is trapped on a single platform during service suspensions, amplifying volatility and limiting user arbitrage opportunities.

Upbit Vows Full Compensation as Investigations Continue

Upbit’s parent company, Dunamu, has emphasized that all customer funds will be fully protected. CEO Oh Kyung-seok stated that the exchange had quickly transferred assets to secure cold wallets, stopped all vulnerable operations and begun tracking the stolen tokens across the Solana network. He reiterated that the entire loss will be covered by Upbit’s corporate funds, ensuring no impact on user balances.

The company is also coordinating with relevant blockchain projects and institutions to freeze additional stolen tokens. About 12 billion KRW in Solana-based assets has already been frozen across cooperating networks. Upbit says it will continue to work with law enforcement and blockchain teams to recover as many of the assets as possible.

Hack Occurs on Anniversary of Upbit’s 2019 Breach

The incident coincides precisely with the sixth anniversary of Upbit, one of South Korea’s most notorious crypto hacks. In November 2019, the exchange lost 342,000 ETH, then worth around $41.5 million, in an attack linked to North Korean hackers. The stolen ETH has since appreciated dramatically and today is valued at more than $1 billion.

This historical parallel has fueled public concern, especially as Solana’s ecosystem has become a prime target for sophisticated attackers in recent years. Upbit has attempted to ease fears by stressing that today’s security standards are significantly more robust than in 2019 and that rapid detection prevented the incident from escalating further.

Deposit and Withdrawal Resumption Will Be Gradual

Upbit announced that it is performing a comprehensive review of the entire digital asset deposit and withdrawal infrastructure, not just Solana-related systems. The exchange plans to reopen services gradually after concluding its security checks. It has asked users to remain vigilant and report any suspicious on-chain activity linked to the recent exploit.

While the immediate financial damage is substantial, the company insists it is fully equipped to absorb the losses. User funds remain intact, and internal reserves will be used to cover all missing assets.