Solana Security Evolution: From Upbit’s $31M Hack to Industry-Wide Cold Storage Adoption

The November 2025 hack of Upbit's Solana hot wallet, resulting in a $31 million loss, has triggered a seismic shift in cryptocurrency exchange security protocols. As South Korea's largest exchange moves over 99% of its digital assets to cold storage, this incident highlights both the persistent vulnerabilities in hot wallet systems and the maturing response mechanisms within the industry. The targeted theft of SOL, ORCA, RAY, and JUP tokens underscores the need for robust security around emerging and established blockchain ecosystems. While the automated freezing of $1.77 million in stolen funds demonstrates improved reactive measures, the proactive shift to near-zero hot wallet exposure represents a fundamental change in risk management philosophy. This event is set to accelerate industry-wide adoption of cold storage solutions, potentially enhancing long-term investor confidence but also raising questions about liquidity trade-offs. The Solana network's involvement in a high-profile security breach may prompt increased scrutiny of its ecosystem's wallet infrastructure, even as the response showcases the growing sophistication of exchange security teams.

Upbit Shifts 99% of Crypto Assets to Cold Storage After $31M Solana Hack

South Korea's largest cryptocurrency exchange is taking drastic security measures following a November breach that drained 44.5 billion KRW (~$31M) from its Solana hot wallet. Parent company Dunamu confirms over 99% of digital assets will now reside in cold storage, reducing hot wallet exposure to near-zero levels.

The hack targeted SOL, ORCA, RAY and JUP tokens. Upbit's automated systems froze $1.77M of stolen funds, but the exchange will cover remaining losses from corporate reserves. This move precedes South Korea's VIRTUAL Asset User Protection Act mandate requiring 80% cold storage minimums - a threshold Upbit already exceeded with 98.33% offline holdings pre-breach.

Market observers note the incident highlights persistent security challenges for exchanges managing both liquidity and asset protection. The industry-wide trend toward cold storage solutions continues gaining momentum as regulatory scrutiny intensifies.

State Street and Galaxy Digital to Launch Tokenized Liquidity Fund on Solana

State Street Investment Management and Galaxy Digital are partnering to introduce the State Street Galaxy Onchain Liquidity Sweep Fund (SWEEP), a private tokenized fund targeting institutional cash management needs. The fund, set to launch on solana in early 2026, will allow Qualified Purchasers to move capital in and out using PayPal's PYUSD stablecoin, offering near 24/7 liquidity—a significant upgrade over traditional market hours.

Ondo Finance has committed to seeding the strategy with approximately $200 million, underscoring rising institutional demand for tokenized money market products. The MOVE reflects broader trends of traditional finance embracing blockchain infrastructure for efficiency gains.

Solana (SOL) Price Consolidates in Tight Range Ahead of Potential Breakout

Solana's native token SOL continues to trade within a narrowing band between $124 support and $145 resistance, reflecting market indecision. The cryptocurrency currently hovers around $137, with its $76.94 billion market capitalization and $6.36 billion daily trading volume signaling strong investor interest despite the consolidation.

Technical analysts observe weakening support at the lower boundary as SOL repeatedly tests both ends of its trading channel. A decisive break above $146 could propel prices toward the $150-$158 zone, while failure to hold $124 may trigger a decline to $118-$110. The asset now faces a critical test of its descending trendline dating back to mid-October.

Market participants remain cautious as the midpoint positioning offers unfavorable risk-reward ratios for new entries. SOL's multiple rejections at the upper boundary suggest persistent selling pressure, though buyers continue defending the $124 level - for now.

Bhutan Launches TER, a Gold-Backed Digital Token on Solana Blockchain

Bhutan has unveiled TER, a sovereign-backed digital token pegged 1:1 to physical gold, set to launch December 17 on Solana's blockchain. Developed by Gelephu Mindfulness City and issued through DK Bank, the token combines traditional asset stability with blockchain efficiency.

The Solana network was selected for its low-cost transactions and transparent ledger—critical features for a gold-backed instrument targeting both institutional and retail users. Matrixdock's technology underpins the issuance process, ensuring real-time auditability of reserves.

This initiative reflects Bhutan's broader strategy to position itself at the intersection of digital finance and tangible value storage. Unlike algorithmic stablecoins, TER's Gold collateralization provides inherent price stability absent in purely crypto-native assets.