Bithumb Suspends Transfers to Upbit After Hack Incident

Bithumb, South Korea’s second-largest cryptocurrency exchange, halted transfers to Upbit on November 27 after Upbit suffered a major hack involving $36 million in Solana-based tokens.

This move intensifies scrutiny on exchange security, affecting liquidity and trading between South Korea’s top exchanges amid ongoing regulatory investigations.

Immediate implications include disrupted liquidity

between these key exchanges, impacting overall trading volumes. Upbit temporarily halted Solana asset transactions in response to this security breach. The financial impact is widespread, with Upbit absorbing the losses by assuring full compensation to users as confirmed by CEO Oh Kyung-seok.

Oh Kyung-seok, CEO of Dunamu (Upbit’s parent company), stated, “We will cover the entire amount with Upbit assets to ensure no damage to members’ assets.”

Oh Kyung-seok, CEO of Dunamu (Upbit’s parent company), stated, “We will cover the entire amount with Upbit assets to ensure no damage to members’ assets.”

Regulatory Pressures Intensify After Solana Security Breach

Did you know? In 2019, Upbit faced a similar breach with hackers stealing over 342,000 ETH. This reiterates the recurring challenge of securing digital assets against sophisticated cyber threats, emphasizing ongoing vulnerabilities within major exchanges.

According to data from Weex on market services, Solana (SOL) maintains a market cap of approximately $79.68 billion, reflecting a market dominance of 2.55%. Recently, SOL’s price saw a 7.73% increase over one week, although it dropped 27.95% over 30 days. Trading volume decreased dramatically, falling 29.22% in the past 24 hours.

Insights from Coincu research suggest South Korea’s crypto market could face stricter regulations post-breach, ensuring exchange compliance with advanced security standards. This stance aligns with historical trends, where significant hacks have led to reinforced regulatory frameworks.