- Upbit faces a $37 million Solana asset loss.
- Full reimbursement pledge mitigates customer impact.
- Lazarus Group suspected in coordinated attack.
Upbit Exchange faced a significant incident on the Solana network, losing $37 million to hackers linked to North Korea’s Lazarus Group, impacting customers globally.
The breach raises security concerns within crypto markets, emphasizing vulnerabilities in centralized exchanges while Upbit’s full reimbursement pledge aims to maintain trust amid financial strains.
South Korea’s Upbit Exchange
South Korea’s Upbit Exchange faced a substantial breach involving the Solana network, losing $37 million. The company has assured customers of full reimbursement, attributing the incident to abnormal withdrawals involving compromised keys.
Oh Kyung-seok, CEO, Dunamu (Upbit): “We deeply regret the abnormal withdrawal incident in our Solana ecosystem wallet. We will reimburse 100% of customer losses from our corporate funds.”
Following the breach, Upbit immediately halted deposits and withdrawals, aiming to protect remaining assets. Authorities were engaged and the freeze of assets worth 12 billion won is underway to recover stolen funds.
The reported loss adjusted to 44.5 billion won underscores the significant impact on Upbit’s financial position. However, the decision to reimburse customers quickly aims to preserve trust and confidence within the market.
Forensics and Security Concerns
Forensics link the attack to the notorious Lazarus Group, reiterating concerns over exchange security. South Korean authorities continue investigating, signaling heightened regulatory scrutiny moving forward.
This breach highlights ongoing vulnerabilities within centralized exchanges, with calls from the community urging for improved security measures. Historically, high-profile hacks typically involve administrative key compromises, emphasizing the need for multi-signature custody solutions.
