Lazarus Suspected in Major Solana Hack

On November 28, Upbit, South Korea’s largest cryptocurrency exchange, suffered a significant hack linked to the Lazarus Group, resulting in a loss of approximately 44.5 billion KRW from its Solana network hot wallet.

The breach exemplifies persistent vulnerabilities in key management and network security, prompting increased scrutiny on South Korean exchanges amid rising threats from sophisticated hacking groups like Lazarus.

Lazarus Strikes on Day of Upbit’s Major Merger Announcement

The attack was identified soon after Dunamu, Upbit’s parent company, announced a merger with Naver’s fintech arm. Security firm GoPlus alerted about key management issues, observing similarities with Lazarus methods. Cold wallets remain secure, but the systemic vulnerabilities raised alarms across the industry. Oh Kyung-seok, CEO of Dunamu, confirmed swift action to halt transactions, with total reimbursement from company reserves.

This contrasts with other firms that delay such commitments, reflecting positively on customer trust retention.

“We paused deposits and withdrawals immediately and will cover all losses with our own capital,” stated Oh Kyung-seok, CEO of Dunamu. source

Market Sees Mixed Reactions Amid Upbit Security Concerns

Did you know? The Lazarus Group has been linked to numerous cyber attacks on cryptocurrency exchanges, showcasing the ongoing security challenges in the crypto industry.

Solana (SOL) stands at $140.43 with a market cap of $78.56 billion, experiencing a 6.51% rise over seven days. Noteworthy 24-hour changes show a 1.58% drop. Trading volumes dipped 38.70% to $3.31 billion. Data from CoinMarketCap suggests increased interest despite broader declines.

Coincu’s research team suggests the hack might tighten regulatory scrutiny over South Korean exchanges. Heightened compliance expectations could lead to stricter internal controls. Historical trends emphasize recurrent vulnerabilities that demand robust solutions, reinforcing technological upgrades as essential steps for safeguarding digital assets.