Binance faces pressure in Korea after freezing only 17% of hacked upbit funds

Cryptocurrency exchange Binance has come under pressure from South Korean authorities after freezing only a small portion of funds stolen in the recent hack of its Upbit platform. This event has raised questions about the exchange's slow response and its limited asset freezing measures.

Fund Freezing and Delays

South Korean police have asked Binance to freeze cryptocurrency stolen from Upbit during a hack that resulted in significant losses. Authorities requested the freezing of approximately 470 million won (approximately $370,000) in Solana. However, Binance only froze 80 million won, representing just 17% of the requested amount. The exchange cited the need for additional verification of the request for the delay.

When asked about its actions and delays, Binance stated, "Our position remains unchanged: we will continue to cooperate with relevant authorities and partners in accordance with relevant procedures."

Hackers and Fund Conversion

Investigators soon discovered that the hackers who carried out the breach converted most of the stolen Solana into Ethereum, likely due to the latter's high liquidity. Total losses from the incident were estimated at approximately 54 billion won, or $37 million. Upbit, for its part, stated that all affected users would receive full compensation.

Criticism of Slow Response

Cryptocurrency experts have questioned Binance's slow response to the incident. Cho Jae-woo, director of the Blockchain Research Institute at Hansung University, noted that a quick response is crucial in the event of a hack. He criticized exchanges for their hesitation due to legal concerns.

>>>> "To prevent damage from a hack, a quick initial freeze is necessary, but exchanges often cite the risk of litigation as a justification for their caution," he said. <<<<

Proposal to create a global hotline

Cho also proposed creating a global hotline between exchanges so that funds can be frozen before they disappear. This could significantly reduce user losses and improve security in the cryptocurrency space.

In conclusion

The Binance and Upbit hacks highlight the importance of cryptocurrency exchanges responding quickly to security incidents. Amid growing threats from hackers and scammers, exchanges need to take more decisive measures to protect their users and their funds.