Upbit Hacked: Solana Transfers Halted After Irregular Withdrawals

Upbit Hacked: Security Measures, Asset Freeze, and User Compensation

South Korea’s largest crypto exchange, Upbit, has issued an emergency announcement after confirming a major abnormal withdrawal involving assets on the Solana network, now being widely referred to as the Upbit hacked across the crypto community. 

Source: Official Service Center

According to Dunamu CEO Oh Kyung-seok, approximately 54 billion won ($38.6 million) worth of digital assets were transferred to an unknown external wallet early on November 27, 2025, triggering immediate concerns of a security breach and prompting the exchange to suspend all deposits and withdrawals while the incident is investigated.

What Actually Happened?

Upbit detected unusual withdrawal activity around 04:42 KST, involving multiple Solana-based tokens. The exchange quickly halted all deposit and withdrawal services and moved remaining funds into secure cold wallets to prevent further losses.

Affected assets of the Incident include major Solana ecosystem tokens such as:

SOL (Solana), USDC, BONK, JUP (Jupiter), RAY (Raydium), RENDER, PYTH, ORCA, TRUMP, ME (Magic Eden), and several others.

The platform confirmed that part of the outflow involved Solaire (LAYER), with approximately $8.57 million (₩12 billion) already frozen on-chain.

How Is the Exchange Responding?

Following the incident, the platform outlined several emergency actions:

1. Asset Transfer to Cold Wallets: All assets were moved to secured offline storage to block further unauthorized transfers.

2. On-Chain Freezing Efforts: 12 billion won worth of Solaire assets successfully frozen. Additional freeze attempts underway with blockchain projects and partners.

3. Full System Security Check: Reviewing solana network integrations, wallet systems, and overall withdrawal infrastructure. Deposits and withdrawals will resume only after security confirmation.

The biggest concern now is whether users will be left paying the price for this “Upbit Hack”, or if the exchange will take full responsibility and cover the losses—and just how far that compensation will go.

Will Users Lose Funds?  The platform emphasized that users will not suffer any losses, stating:

“The entire amount will be covered by internal holdings.”

This means the exchange will compensate fully for the outflow using company reserves.

Upbit Hacked: Was It a Real Hack or Technical Failure?

As of now, the exact cause of the outflow has not been officially confirmed.

Key possibilities being discussed around several possible scenario, include:

• A wallet key compromise

• A smart contract vulnerability within Solana-based tokens

• A system integration error on Upbit’s withdrawal infrastructure

• A targeted exploit using automated withdrawal patterns

The crypto trading netowk has not stated whether the incident originated from an internal system failure or an external attack. The exchange only described the event as an “abnormal withdrawal,” and investigations are ongoing.

Analysts observing the wide range of affected tokens suggest that this may not be limited to a single smart contract issue, but could instead indicate a wallet- or API-related security breach. Investigations are still ongoing to determine the true nature of the incident.

Conclusion

This incident marks one of the largest Solana-related exchange-outflows in 2025. While Upbit’s quick freezing actions and compensation promise have reduced user impact, the incident has added to growing concerns about centralized exchange security. 

It also serves as a sharp reminder that relying on a single platform can be risky, pushing investors toward safer custody methods such as hardware wallets and multi-source storage.

Although, a detailed report on the cause – whether a smart contract exploit, wallet key compromise, or internal system vulnerability, is yet to come, but the search interest for terms like Upbit hack, withdrawal suspended, and Solana outflow cause has surged across crypto news platforms, making this one of the trending crypto lose stories globally.

For now, more updates are expected as investigators uncover the source of the breach.