Upbit Suspends Solana Withdrawals After $38.57 Million Abnormal Outflow

South Korea’s largest cryptocurrency exchange, Upbit, has confirmed that it suffered an unauthorized outflow of approximately $38.5 million in Solana-based assets early on November 27, 2025. The incident was detected at approximately 4:42 a.m. KST (Korean Standard Time) and involved transfers from Upbit’s hot wallet to an unknown external address.

The exchange described the activity as “abnormal withdrawal activity” and has suspended all deposits and withdrawals for the affected Solana tokens to prevent further losses. At the same time, it conducts an emergency security audit.

Details of the Outflow and Immediate Response

The breach affected a variety of Solana-based tokens, including SOL, USDC, BONK, JUP, RAY, RENDER, ORCA, and PYTH. Upon detecting the abnormal activity, Upbit swiftly halted all deposits and withdrawals related to the affected assets.

Oh Kyung-seok, CEO of Dunamu, which operates Upbit, identified with the development and its impact on users:

“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. […] We sincerely apologize for any inconvenience caused by this unusual withdrawal situation.”

In response to the theft, Upbit moved the remaining assets from its hot wallet to cold storage and secured the affected area. The exchange further worked with Solana ecosystem projects and security firms to freeze about $10 million in stolen tokens. The suspicious addresses linked to the breach have, however, been shared publicly to keep users informed. 

Broader Context and Market Reaction

Upbit has promised to cover any losses from its own funds. It reassured users that their money is safe and confirmed that no customer accounts were directly hacked. Upbit is currently investigating whether a stolen private key or a company issue caused the issue.

While trading of other non-Solana assets continues as usual, withdrawals will resume gradually after thorough security audits and necessary system upgrades. The breach comes at a time when Upbit’s parent company, Dunamu, was recently acquired by tech giant Naver. The security issue has drawn the attention of local authorities, who have launched an investigation.

Meanwhile, following the breach, Solana’s SOL dropped nearly 3% but began to recover shortly after. The incident highlights the ongoing risks posed by hot wallets, even as exchanges improve security. Since Upbit holds over 70% of the market share in South Korea, analysts expect greater regulatory scrutiny of its custody practices following the incident.

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