Binance Rebuts Claims About Upbit Hack Response

Binance has refuted allegations by South Korean media regarding a lagged response to the Upbit hack, asserting immediate action to secure funds after detecting suspicious activities in Korea.

The incident underscores the fragile state of cybersecurity in cryptocurrency exchanges, highlighting the need for stringent security measures to prevent asset theft across global platforms.

Binance Denies Slow Response, Defends Fund-Freezing Actions

Binance disputed claims of inadequate action following hacking reports from South Korean media. Binance highlighted its swift action to freeze some stolen Solana funds. The spokesperson clarified, “Any claims that we did not take timely and effective measures are baseless.”

Partial fund freezing led to scrutiny as Binance reportedly froze 17% of the requested funds, equating to approximately 80 million Korean won in stolen Solana tokens. The thorough verification process delayed freezing actions, which was vital to prevent unauthorized access.

We emphasize the need for stricter IT security standards and expanded audit criteria, stated a Binance official spokesperson. Source.

Financial Services Commission in South Korea reacted robustly, calling for heightened security standards across cryptocurrency exchanges. They advocate for mandatory IT risk plans and revenue-linked penalties.

South Korean Regulatory Response and Potential Market Impact

Did you know? Prior incidents reveal that over 900 users suffered extensive damages in IT incidents at South Korean exchanges, highlighting a persistent cybersecurity challenge.

According to CoinMarketCap, Solana (SOL) currently trades at $138.46, with a market cap of $77.80 billion. While the 24-hour trading volume decreased by 19.22%, SOL experienced a slight 5.96% price uptick over the same period. The circulating supply stands at 561.9 million.

Coincu research indicates potential regulatory tightening as a significant outcome of this event. Such measures could bolster consumer protection but may also increase operational challenges for exchanges, demanding robust and proactive compliance frameworks from platforms.