South Korea-based crypto exchange Upbit has paused all Solana-related services following the discovery of a significant unauthorized transfer. The firm confirmed an illegal withdrawal of roughly $38 million in Solana assets to an external wallet, leading to immediate intervention and suspension of network activity.
A team of engineers swiftly secured assets in cold storage and froze approximately ₩12 billion worth of LAYER tokens linked to the breach. Upbit’s commitment is to cover the full loss incurred as a guarantee to customers, ensuring no user funds will be affected.
The breach occurred during a period marked by heightened regulatory scrutiny for crypto exchanges, further emphasizing Upbit’s proactive stance on customer security.
Market reactions were muted with Solana-linked tokens showing minimal declines despite the initial price movement. The broader Solana market remains active as traders assess the impact of the incident.