Quick take:
- Upbit tried to mitigate the breach by halting deposit and withdrawal services and moving assets to cold storage.
- Oh Kyung-seok, the CEO of Dunamu, the parent organisation of Upbit, said the exchange will fully reimburse customers.
- The company said it has started a comprehensive review of the stability and security of its entire digital asset deposit and withdrawal system.
Upbit said on Thursday it halted exchange services after discovering unauthorized withdrawals from its Solana hot wallet. The crypto exchange company confirmed in a notice that some Solana network assets (worth approximately 44.5 billion won, about $36 million) were transferred to an unspecified wallet address on Thursday morning.
According to the notice, multiple tokens were transferred, including Double Zero (2Z), Access Protocol (ACS), Bonk (BONK), Doodles (DOOD), DRIFT (DRIFT), Huma Finance (HUMA), Ionet (IO), Zito (JTO), Jupiter (JUP), Solaire (LAYER), Magic Eden (ME), Cat in a Dog World (MEW), MOODENG, ORCA, Fudge Penguin (PENGU), Peace Network (PYTH), Radium (RAY), Render Token (RENDER), Solana (SOL), SonicSVM (SONIC), SOON, Official Trump (TRUMP), USD Coin (USDC), and Wormhole (W).
Commenting on the incident, Oh Kyung-seok, the CEO of Dunamu, the parent organisation of Upbit, said the exchange will fully reimburse customers.
“First, we deeply apologize for any inconvenience caused to our members due to the urgent digital asset deposit/withdrawal service inspection and the abnormal withdrawal situation today,” said Kyung-seok. “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 that no damage is incurred to your assets.”
The company said it has started a comprehensive review of the stability and security of its entire digital asset deposit and withdrawal system. To prevent further unauthorized transfers, Upbit moved all the remaining assets to cold storage.
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