$38M in Solana Ecosystem Crypto Assets, TRUMP, BONK, JUP Drained

South Korea’s largest crypto exchange Upbit suspends deposits and withdrawals after an unauthorized transfer of 54 billion won (nearly $38 million) in Solana-based assets to an external wallet. The exchange confirmed Solana ecosystem crypto assets, including Double Zero (2Z), Official Trump (TRUMP), Bonk and Jupiter (JUP), were transferred in the Upbit hack.

Solana-Based Crypto Assets Impacted in Upbit Hack

Crypto exchange Upbit suffered an abnormal outflow on the Solana network, according to an official announcement on November 27. Exchange claimed its wallets were compromised, leading to a hack and transfer of 54 billion won ($38 million) in Solana-based assets to an external wallet.

As a result, the exchange has suspended deposits and withdrawals to conduct a comprehensive inspection, prioritizing the protection of crypto assets on other networks. The exchange will cover all user losses in the Upbit hack.

“We immediately identified the extent of the digital asset outflow caused by the abnormal withdrawals and will cover the entire amount with Upbit assets to ensure no damage to members’ assets.”

The Upbit hack has only impacted the Solana network, with a massive transfer of SOL tokens. Other affected crypto assets include 2Z, ACS, BONK, DOOD, DRIFT, HUMA, IO, JTO, JUP, LAYER, ME, MEW, MOODENG, ORCA, PENGU, PYTH, RAY, RENDER, SONIC, SOON, TRUMP, USDC, and W.

Measures Taken to Protect Other Crypto Assets

The Upbit team and blockchain security firms are actively tracking and analyzing the hack. In order to prevent further outflows, the exchange has immediately taken security measures.

All crypto assets on Solana and other blockchains were transferred to a secure cold wallet. The leading is taking on-chain measures to freeze relevant crypto asset transactions and cooperate with investigative authorities. The leading crypto exchange successfully froze some assets to prevent further losses.

The team is conducting a comprehensive review of the stability and security of the overall crypto asset deposit and withdrawal system, including the Solana network. Upbit said it will resume deposit and withdrawal services once the security check is completed.

SOL Price Slips Amid Upbit Hack

Solana saw a slight profit booking in response to the Upbit hack. However, Solana-based crypto assets RENDER, JUP, BONK, and PENGU fell more than 1% a few hours. This hack follows the $129 million Balancer hack earlier this month.

SOL price pared some gains after a huge jump in the last 24 hours, with the price currently trading at $142.85. The 24-hour low and high are $135.63 and $144.47, respectively.

The Upbit hack occurring amid its parent Dunamu’s acquisition by Naver Financial has raised eyebrows within the crypto community. Recently, the Financial Intelligence Unit (FIU) fined Upbit $25 million and imposed a three-month suspension on new customer onboarding for AML and KYC violations.

Moreover, the South Korean crypto industry is expected to face more challenges as the FIU looks to impose sanctions, fines, and suspend deposit and withdrawals for multiple domestic crypto exchanges.