Binance Criticised for Slow, Partial Freeze After $36M Upbit SOL Hack
Hackers stole roughly $36 million in Solana (SOL) assets from South Korea’s Upbit on November 27. South Korean investigators asked major exchanges to freeze funds linked to the theft and specifically requested Binance freeze about 470 million won (≈$370,000) in SOL. Binance froze only about $55,000 (≈17% of the request) after approximately a 15‑hour delay, citing the need for additional verification. The slow and partial response drew criticism from investigators, regulators and industry experts, who say cross‑border verification procedures and legal risk claims by exchanges can impede rapid asset freezes. Proposals under discussion include dedicated emergency channels or standardised cross‑exchange protocols to enable faster temporary freezes while verification proceeds. The incident coincides with South Korea’s move to apply bank‑level “no‑fault” standards to crypto exchanges, which may increase regulatory scrutiny on incident response and custody practices. Traders should note heightened attention on exchange compliance and cross‑border freeze effectiveness, the likely persistence of fast on‑chain asset flows after hacks, and increased emphasis on rapid tracing and coordination to limit losses.
Bearish
The news is likely bearish for Solana (SOL) price sentiment in the short term. A high‑profile $36M hack plus reports that a major exchange froze only a small portion of requested SOL and took many hours to act raises concerns about custodial risk, cross‑border enforcement speed and exchange cooperation. Such events typically increase selling pressure as traders reduce exposure to assets perceived as vulnerable to theft or to platforms seen as slow to protect funds. Medium term the effect could persist if regulatory scrutiny tightens and market participants demand higher risk premia for custody and fast‑moving chain risks. However, the negative impact may be limited and fade over time if exchanges adopt clearer emergency freeze protocols, recovery efforts recover some funds, or confidence is restored by regulatory action — in which case the move could be more transitory than structural.