$36.8 Million Lost in Solana Network

On November 27, 2025, South Korean exchange Upbit experienced a $36.8 million security breach involving Solana network assets, leading to suspended operations and asset protection measures.

This incident raises concerns about crypto exchange security, impacting market trust as Upbit addresses user asset protection amid a significant financial loss and regulatory scrutiny.

Regulatory Scrutiny Likely as Upbit Rapidly Responds

Upbit faced a serious security breach, resulting in over $36 million in asset losses from its Solana network. This breach impacted several tokens, leading Upbit to halt operations due to the breach and shift remaining assets to cold storage. CEO Oh Kyung-seok prioritized protecting customer assets and committed to covering the entire loss from company reserves, a move widely praised for maintaining user trust. As Oh Kyung-seok stated, “Customer assets will be prioritized, and the company is absorbing the loss to maintain trust.”

Funds have been identified moving through intermediary addresses with some reaching a Binance user’s wallet. The incident coincided with Upbit’s merger announcement with Naver Financial.

The community’s reactions were divided. While concerns about recurring wallet vulnerabilities emerged, praise was directed towards Upbit’s rapid response and transparency. Notably absent were official comments from Binance or Solana executives, highlighting the incident’s complexity.

Historical Context, Price Data, and Expert Analysis

Did you know? Upbit previously faced a significant incident in 2019 when $1 billion in Ethereum was lost to North Korean hackers, highlighting ongoing challenges in securing crypto assets and exchange platforms against evolving threats.

According to CoinMarketCap, Solana (SOL) has a current value of $143.82, with a market cap of $80.45 billion and market dominance of 2.58%. The 24-hour trading volume reached $5.37 billion, showing a 16.3% change. Recent price trends indicate a 3.07% rise in 24 hours but a 29.03% decrease over 30 days as of November 27, 2025.

Coincu’s research team suggests increased scrutiny and potential regulatory changes following this breach. They highlight a trend towards stricter security measures and cross-chain compliance requirements aimed at preventing similar incidents in the future.