Binance Says It Acted Immediately After Upbit $30M Solana Hack; Authorities Report Partial Freeze
Binance denies reports it delayed or only partially complied with South Korean requests to freeze funds after a late-November hack of Upbit’s Solana hot wallet. South Korean investigators say attackers stole roughly 44.5 billion won (~$30M) and rapidly moved funds through more than 1,000 wallets using chain hopping, bridges and token swaps; Upbit asked Binance to freeze about 470 million won (~$370k) in traced SOL, of which authorities report roughly 80 million won (~$75k), or ~17%, was frozen. Binance says its security and investigations teams identified the incident, worked with law enforcement and acted immediately, completing the freeze about 15 hours after the request. Investigators say much laundered value passed into third-party service wallets on Binance and that attackers converted a portion of stolen SOL into ETH. South Korean police opened an investigation and early reporting links the intrusion to North Korea‑linked Lazarus Group. Upbit moved nearly all customer assets into cold storage and raised its cold‑wallet ratio to 99% following the breach. The partial and delayed-freeze claims have drawn criticism from researchers and industry observers and have renewed calls for stronger cross-border exchange coordination, such as an emergency hotline or pre‑authorized freeze mechanism. Key keywords: Binance, Upbit hack, Solana, funds freeze, crypto laundering, Lazarus Group.
Bearish
The incident is likely bearish for SOL price in the short term. A high‑value exchange hack, public reports that a majority of stolen SOL moved through services on Binance, and claims of only a partial freeze increase sell pressure and uncertainty around recoverability. Traders may react by reducing exposure to SOL and related Solana tokens, increasing volatility and temporary outflows from centralized platforms. In the medium term the effect could moderate: Upbit’s move to cold storage and active law‑enforcement involvement reduce risk of repeated hot‑wallet losses, and clearer outcomes (recovery, prosecutions, or stronger exchange coordination) would restore confidence. However, persistent concerns about exchange responsiveness and laundering routes keep longer‑term sentiment cautious until systemic reforms (hotlines, preauthorized freezes) or decisive recovery actions occur. Key market drivers: perceived custodial risk, potential token sell pressure from launderers, regulatory scrutiny, and exchange reputational damage.