Upbit Locks 99% of User Assets in Cold Storage After Major Hack

Upbit has shifted 99% of user assets to cold storage after a $30 million hack, exceeding legal requirements and setting a new security standard. The move prioritizes asset protection but may slow large withdrawals during high demand.

Upbit, a major South Korean cryptocurrency exchange, has moved 99% of user assets into cold storage following a significant hack that resulted in the loss of approximately $30 million from its Solana hot wallet. This security overhaul far exceeds the country's legal requirement of holding at least 80% of assets offline. Upbit's operator, Dunamu, announced that hot wallet exposure will be reduced to nearly zero, with cold wallets now holding the vast majority of funds to minimize the risk of future breaches. The company reviewed and upgraded its wallet infrastructure, tightened internal controls, and shifted assets offline to protect users. While this move enhances security and sets a new industry benchmark, it may also slow down large withdrawals during periods of high demand. Upbit has assured users that all losses will be covered from its reserves and that customer funds remain safe. The exchange's strategy is expected to pressure other platforms to improve their own security standards.