South Korean crypto exchange, Upbit, has temporarily halted deposits and withdrawals following a substantial unauthorized transfer from the Solana network. The incident resulted in approximately $38 million being stolen, prompting a wave of alarm within the global cryptocurrency market. 54 billion won, equivalent to roughly $38 million USD, was transferred from Upbit’s wallets without permission, raising concerns about security vulnerabilities across the industry. Upbit reacted swiftly, halting all transactions to protect user funds and prevent further asset loss. In response to this breach, the exchange has pledged to cover the complete loss using its own reserves, ensuring no financial burden falls on affected users. This incident coincides with significant changes at Upbit’s parent company, Dunamu, as it prepares for a takeover by Naver Financial. The timing of this hack has amplified existing pressure due to growing regulatory scrutiny in South Korea. Regulatory authorities have already issued penalties for AML and identity verification violations, forcing Upbit to temporarily halt new customer onboarding. This highlights the escalating challenges facing the crypto market in South Korea. As the incident unfolds, market volatility is expected. Several Solana-linked tokens, including Render, Jupiter, Bonk, and Pengu, experienced drops of over 1% following the breach. Despite these fluctuations, Solana’s price remains stable at $141.18 according to CoinMarketCap data. Experts are urging a thorough security review of Upbit’s system to mitigate future incidents. Following this incident, there is heightened scrutiny on cryptocurrency exchanges in South Korea with regulatory bodies preparing additional sanctions and fines, potentially impacting the future landscape of the industry.