Binance Criticized for Delayed, Partial Freeze of Upbit Hack Funds

Binance froze only 17% of stolen Upbit hack funds after a 15-hour delay, citing verification needs. The incident highlights regulatory gaps and calls for faster, coordinated responses to crypto thefts.

Binance has come under scrutiny after freezing only about 17% of the Solana tokens stolen in the recent Upbit hack, following requests from South Korean police and Upbit. Authorities had asked Binance to freeze approximately 470 million won (about $370,000) in assets, but the exchange cited the need for additional verification and ultimately froze only 80 million won (about $75,000) after a 15-hour delay. Hackers reportedly used complex laundering tactics, moving funds across multiple chains before they reached Binance. The incident has highlighted challenges in cross-border cooperation and the limitations of current regulations, as exchanges are not legally required to act on thefts. Security experts and market observers are calling for faster, more coordinated responses, including the establishment of a global emergency hotline for asset freezes. Upbit has responded by moving 99% of customer assets into cold storage and working with authorities to trace and recover stolen funds. The event has renewed calls for stronger regulations and operational enhancements to improve the security of cryptocurrency exchanges.