Upbit Hack: $1.77M in Stolen Crypto Frozen as Investigation Widens
Another day, another crypto exchange breach—but this time, the good guys might be winning.
South Korean authorities just froze $1.77 million in digital assets traced to a major Upbit hack. The investigation is expanding, pulling in international partners to track the remaining funds.
The Freeze Is On
Forget anonymous, untraceable money. Forensic blockchain analysis led investigators straight to the stolen stash. The freeze order hit multiple wallets, effectively putting a digital padlock on the funds.
It’s a rare win for security teams, proving that on-chain sleuthing can outpace even the slickest hackers.
Security Under the Microscope
The breach throws a harsh light on exchange security—again. While the partial recovery is a positive step, it underscores a persistent vulnerability in the crypto ecosystem.
Every major hack chips away at institutional confidence, giving traditional finance skeptics fresh ammunition. They love to point and say, 'See? We told you it was just digital Monopoly money.'
The race isn't just to recover funds; it's to prove the infrastructure can be hardened for the mainstream.
The Bottom Line
A $1.77 million freeze is a headline, but it's also a test. Can the industry respond faster, trace better, and secure more effectively than the thieves? This investigation's expansion suggests they're trying. The real victory won't be recovering stolen coins—it'll be making them impossible to steal in the first place.
Upbit Responds to $38M Hack With New Tracking System
The security changes were followed by the breach of the Upbit hack last month, where close to $38 million in Solana-based tokens, such as TRUMP and Bonk, were emptied into a foreign wallet. The incident disrupted several ecosystems and ranked among Upbit’s largest hacks.
To deal with threats like these, the exchange created its own On-chain Tracking Service (OTS) that tracks on-chain flows 24/7. The system tracks route trails, finds linked wallets, and points towards suspicious activities.
In case compromised addresses are detected, the team blocks them and discloses the details to partner exchanges, which instantly freeze stolen funds. Such combined effort resulted in the freezing of assets worth $1.5 million in the initial five hours of the incident. Further collaboration with offshore exchanges has seen that amount rise to $1.77 million.
Community Bounty Program Introduced to Recover Stolen Assets
The exchange has initiated a program that promotes the involvement of the community in recovering stolen assets. The program is oriented to white-hat hackers, blockchain analysts, security researchers, and exchange operators. It will offer a 10% reward on the amount recovered for those who play a role in locating or freezing stolen funds.
The exchange restored complete deposit and withdrawal services on the 6th, following a complete upgrade of a wallet system and the addition of extra security measures. During the investigation, Upbit had found a critical vulnerability in the wallet, which they fixed. The exchange has stated that it will continue to update as more information comes out.
