- Binance froze only a small portion of crypto funds linked to the Upbit hack after police requested a freeze.
- Upbit lost approximately $36 million in stolen Solana-based assets during a November 27 hack.
- Binance delayed freezing assets by 15 hours and blocked about $55,000 of the requested $370,000 worth of tokens.
- Experts highlight the importance of rapid freezes to limit damage in cryptocurrency hacks.
- Upbit and law enforcement continue investigating and tracking stolen funds across multiple platforms.
On November 27, the South Korean cryptocurrency exchange Upbit experienced a hack resulting in unauthorized withdrawals of Solana-based assets valued around $36 million. Following the incident, South Korean authorities requested that Binance, a leading global exchange, freeze approximately $370,000 worth of tokens believed to be linked to the stolen funds.
However, Binance froze only about $55,000—roughly 17% of the requested amount—and did so after a delay of roughly 15 hours. The exchange cited the need for additional verification as the reason for the delay and partial freeze, according to reports from KBS.
This incident highlights challenges faced by foreign law enforcement when requesting asset freezes from centralized exchanges. Rapid initial freezes are considered critical by experts for minimizing losses in Hacking cases. Cho Jae-woo, director of Hansung University’s Blockchain Research Institute, described such delays as a common resistance by exchanges, often justified by concerns over potential legal liabilities. He suggested that creating a global hotline among exchanges with emergency freeze authority could improve response times.
Upbit confirmed ongoing cooperation with law enforcement to identify those responsible and stated efforts to coordinate with major global exchanges to freeze any detected stolen assets. A spokesperson for Binance said the company adheres to an official law enforcement channel to respond to requests and works closely with authorities worldwide to support investigations into illicit activity.
As the investigation continues, Upbit plans to provide updates when new information becomes available.
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