Upbit Pledges Customer Reimbursement Amid Solana Crypto Hack

Upbit, a leading South Korean crypto exchange, reported a $36 million security breach involving Solana network assets, with concerns potentially pointing towards North Korea’s Lazarus Group.

The breach underscores vulnerabilities within crypto exchanges, highlights geopolitical cyber threats, and temporarily disrupted Solana token markets, as Upbit pledges full user asset reimbursement.

Upbit’s Proactive Measures Following $36 Million Breach

Dunamu Inc.‘s Upbit identified irregular withdrawals on the Solana network, informing stakeholders that 24 Solana-based tokens, including SOL and USDC, were affected. The hackers‘ technique, described as highly sophisticated, raised speculations about potential involvement by North Korea’s Lazarus Group.

Ki Young Ju, CEO of CryptoQuant, remarked, “The attack method disclosed by Upbit is almost impossible for an ordinary hacker to execute” and if true, “I doubt any hacker organization other than North Korea’s Lazarus could achieve this.” The reevaluation of withdrawn crypto values adjusted the initial impact, calming initial market anxiety. Solana tokens on Upbit noticed an unexpected price surge, resulting from stopped arbitrage operations. In bold action, the exchange initiated asset freezes totaling about 2.3 billion KRW.

Reaction within the crypto community focused on the attack’s difficulty, with Dunamu pledged asset reimbursement, boosting user trust amid South Korea’s stringent financial regulations.

Market Dynamics Amid Solana’s Price Volatility

Did you know? Upbit experienced another security breach six years ago on a similar date when $41.5 million in Ethereum was allegedly stolen by the Lazarus Group. The incident underscores both the persistent threat from advanced hacking collectives and Upbit’s dedication to ensuring user reimbursement.

According to CoinMarketCap, Solana (SOL)’s market cap stands at $79.26 billion, with a current price of $141.68. Solana’s 24-hour trading volume is approximately $3.53 billion, noticing a decline. The past week saw a 12.16% increase in SOL price, despite a 27.10% drop over 30 days, underscoring market volatility.

Coincu researchers foresee intensified scrutiny on exchange security protocols, with likely advances in technological safeguards fostering enhanced user protection. Regulatory actions might revisit existing frameworks to address these complex exploits, ensuring more robust defenses in the crypto trading ecosystem.