🕵️♂️ The South Korean cryptocurrency exchange Upbit experienced a serious security incident — hackers withdrew approximately $36 million from a hot wallet on the Solana network. The attack occurred just one day after parent company Dunamu announced a major deal with tech giant Naver worth around $10 billion.
The situation escalated quickly. According to Upbit, suspicious transactions were detected at 4:42 a.m. local time on November 27. The exchange immediately froze deposits and withdrawals, initiating a full audit of all supported assets. Experts confirmed that the hack affected only the hot wallet. Cold storage and the bulk of reserves remained secure.
To prevent further losses, remaining funds were promptly transferred to cold wallets. At the same time, the team began freezing the stolen assets on the Solana blockchain with support from partners and analytics platforms.
Trading on the exchange continues — users can still buy and sell assets within the platform. However, deposits and withdrawals remain frozen until the security review is complete.
Compensation and Management’s Position
Upbit assured clients that all potential losses would be covered from its own reserves. Users do not need to take any action: balances will be restored automatically after the investigation concludes. The exchange only asks for patience — the process requires coordination with regulators and independent auditors.
Local media report that financial authorities have already begun inspections at the company’s offices to gain a full understanding of the incident. No timeline has been announced for returning to normal operations.
Historical context
The incident immediately reminded the market of 2019, when Upbit fell victim to an attack by the North Korean hacker group Lazarus, losing around $50 million. The new hack raises concerns about the security of even the largest South Korean platforms, despite their reputation and strict regulatory environment.
A Challenging Time for Dunamu and Naver
The incident occurred amid major corporate developments. According to a recent filing, Naver Financial is acquiring Upbit’s operator through a stock swap deal worth 15.1 trillion won (approximately $10.3 billion). As part of the deal, Naver will issue 87.5 million new shares to Dunamu shareholders, making the company its subsidiary.
🌐 The plans go even further. After completing the merger, Dunamu intends to take the company public in the U.S. Additionally, Naver and Dunamu announced they will invest around $7 billion in Web3 and AI technologies over the next five years. The incident occurred at one of the most sensitive moments for all parties involved.
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