Binance Partially Freezes Crypto From Upbit Hack After Police Request

On November 27, 2025, South Korea’s police requested Binance to freeze stolen Solana tokens from Upbit’s hack, but only 17% of the targeted amount was frozen.

This situation highlights potential vulnerabilities in cryptocurrency exchanges’ cooperation with law enforcement, raising security concerns within the industry amidst ongoing investigations.

Binance’s Selective Freeze: Impact and Legal Challenges

The crypto exchange Binance assisted South Korean authorities by freezing 17% of stolen Solana tokens post-Upbit hack. Police initially sought to freeze about 470 million KRW in tokens. Investigators suspect involvement of the Lazarus Group, a notorious hacking collective.

The decision to freeze involved a 15-hour verification delay, which hindered immediate action. This incident draws attention to legal gaps, as current laws do not mandate exchange accountability. International collaboration slowed further theft, freezing $1.77 million in assets.

Market and institutional reactions emphasized heightened security measures across exchanges. FSS Governor Lee Chan-jin labeled systems integral to market integrity, stating, “System security is ‘lifeblood’ of markets; Phase 2 legislation to strengthen protections, impose bank-level liability/no-fault rules on exchanges.” Binance’s actions spotlighted its resolve, though no direct CEO statements were made.

Historical Insights, Market Impact, and Future Outlook

Did you know? On the exact day six years prior, a similar hack on Upbit led to $51 million in Ethereum theft, marking recurring security issues in the exchange’s history.

Solana (SOL) is currently priced at $138.92, with a market cap of $78.04 billion and a market dominance of 2.49%, according to CoinMarketCap. Recent data reveals a significant drop in trading volume, down 25.41% in the past 24 hours. Solana’s three-month trend shows a 42.55% price decrease.

Coincu research indicates growing regulatory focus on crypto exchange security. Analysis from the Coincu team highlights potential expansions of accountability laws following this incident. Upbit’s operational enhancements may serve as a blueprint for other exchanges facing similar cybersecurity challenges.