Upbit Hack Response: Exchange Secures 99% of Funds Offline

Upbit Hack Response: Strengthens Security After Solana Theft Incident

Upbit, South Korea’s largest crypto exchange, gathered all the market attention towards itself with a potential Upbit Hack Response towards the crypto theft incident it suffered in November end. 

Upbit revealed that it will increase its cold wallet storage ratio to 99%, and remaining only 1% in hot wallets – the lowest hot wallet ratio among native digital asset exchanges. This exceeds South Korea’s Virtual Asset User Protection Act requirement, which mandates that exchanges keep at least 80% of user funds offline.

Where most of the exchanges maintained cold wallet ratios between 82–90%, the exchange consistently led with 98.3%, by the end of October, 2025, and now further expanding that record to 99%. 

Even after being on top spot, what ignites the platforms this much aggressive shift? Well, the answer is clear from last month’s threat. 

Solana Hack Incident: Immediate Response and Asset Protection

On November 27, 2025, Upbit detected unusual withdrawals involving Solana-based tokens, including SOL, USDC, BONK, JUP, RAY, RENDER, PYTH, ORCA, TRUMP, ME, and others. Approximately 54 billion won ($38.6 million) was moved to an external storage, prompting Upbit to immediately suspend deposits and withdrawals.

A portion of the stolen funds, including Solaire (LAYER) worth about 12 billion won ($8.57 million), was already frozen on-chain. Remaining assets were swiftly secured in physical wallets, preventing further loss.

In response to this incident, the exchange is now shifting more public assets to the cold wallets. For context, a hot wallet connects to the internet to facilitate transactions, whereas a cold wallet is offline and considered far safer.

CEO Oh Kyung-seok stated, "We prioritize the protection of customer assets above all else and continuously strive to maintain the lowest hot-wallet usage in the country."

The Need of These Measures: Crypto Hack Trends in Recent Years

The Solana incident highlights broader crypto security risks in 2025. According to the summarized report by Deepstrike:

• 2022 – 2023: Cryptocurrency losses fell ~54% after a peak of $3.8B in 2022.

• 2023 – 2024: Losses rose ~21% to $2.2B.

• 2025 1st half: Stolen funds reached ~$2.17B, nearly matching the full 2024 total.

Wallet takeovers accounted for a major portion of ~69% in the first half of 2025 losses (~$1.71B), while phishing caused ~16.6% by value (~$410.7M). Smart contract and operational breaches made up the remaining ~14.4%.

The data emphasizes the need for hardware-backed wallets, strict key management, and multi-layer security protocols for both exchanges and users.

Upbit’s Path Forward: Zero Hot Wallets

As part of a company-wide security overhaul, Upbit plans to reduce online storage usage to 0% in the future. This approach aims to safeguard users while enabling confidence in the exchange amid rising crypto adoption.

The platform’s proactive approach after the Solana hack underscores its position as South Korea’s most secure digital asset exchange. By maintaining 99% of funds in cold wallets and preparing to eliminate hot wallets entirely, the exchange reinforces user trust and sets a benchmark in crypto security.