Binance Fires Back: Defends Its Response to Upbit Hack Fallout

Binance isn't taking the heat lying down. The crypto behemoth just issued a sharp rebuttal to mounting criticism over its handling of the recent Upbit security breach.

The Core of the Controversy

Questions swirled around the speed and transparency of Binance's actions following the hack. Critics argued the exchange's protocols failed to prevent the movement of stolen funds across its platform. The industry watched, expecting a standard corporate apology.

Binance's Counter-Punch

Instead, Binance released a detailed timeline and a point-by-point defense. It highlighted its internal monitoring systems that flagged suspicious transactions and emphasized its ongoing collaboration with Upbit and international law enforcement. The message was clear: their security apparatus worked as intended.

A Defining Moment for Crypto Governance

This public spat exposes the raw nerves in decentralized finance's push for legitimacy. Every major hack forces a reckoning—are these platforms fortresses or facades? Binance's aggressive defense signals a shift from passive compliance to active reputation warfare.

In the end, the market votes with its wallet. And while security teams battle hackers, the PR teams battle for trust—arguably the more volatile asset. After all, in crypto, a tarnished reputation can crash faster than a leveraged long on a weekend.

In brief

• Binance denies any delay after the Upbit hack and assures it froze suspicious flows from the first hours, in connection with the authorities.
• South Korean investigators claim that a limited portion of the funds was blocked, while hackers quickly dispersed assets via swaps and cross-chain bridges.
• Upbit shifts 99% of client funds to cold storage, while the controversy continues and Bitcoin reserves on Binance reach a five-year low.

Binance defends itself, says it acted without delay

Binance tightens its ties with TRUMP by highlighting a stablecoin. At the same time, the exchange must respond to a more sensitive controversy: its reaction after the Upbit hack. In a statement, a Binance spokesperson described these accusations as inaccurate and unfounded.

According to the company, its teams detected suspicious movements from the first hours and blocked transfers related to the hacking. Binance says it acted immediately to freeze transactions, limit movements, and cooperate with local South Korean authorities.

This response follows local articles claiming Binance froze only about 17% of the reported funds. A figure the company considers misleading. According to Seoul, hackers used more than a thousand wallets to launder quickly, making freezing and traceability difficult.

A sophisticated hack, a fast laundering

The hacking, which occurred on November 27, targeted Upbit’s solana hot wallet. In a few hours, the attackers dispersed $30 million via chain hopping, swaps, and cross-chain bridges. These methods suggest organized groups; South Korean media cite Lazarus, already linked to crypto attacks.

Investigators say about 470 million won, nearly $370,000 in Solana tokens, were reported to have transited through Binance. According to the same sources, the authorities only froze 80 million won, about $75,000. Binance, for its part, disputes this interpretation and refers to a classic point in these cases: certain requests require additional checks before extending a freeze on a larger scale.

Upbit tightens security after the attack

In the wake of this, Upbit announced it WOULD move 99% of client funds to cold storage, well above South Korean regulatory requirements that mandate a minimum of 80%. The platform, already known to be cautious, stored 98.33% of its assets offline before the incident but is now accelerating this shift to reduce hot wallet exposure to nearly zero.

Operator Dunamu presents this change as one of the strictest responses seen at a major exchange. But the investigation continues and the dividing line remains: after the Upbit hack, Binance insists it reacted immediately, while South Korean authorities believe only part of the funds was frozen in time. In this climate of distrust, another signal feeds tensions: Bitcoin reserves on Binance have also just dropped to their lowest level in five years.

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