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- Binance froze only 17% of the funds South Korean police linked to the Upbit hack.
- Experts say faster cross-exchange freezes are critical in early hacking investigations.
- The incident renews calls for coordinated global emergency-freeze protocols.
South Korean police are scrutinizing the response of global exchanges after Binance reportedly froze only a fraction of the crypto assets tied to the recent Upbit hack. The incident is amplifying concerns about how quickly — and how thoroughly — major trading platforms cooperate with cross-border law enforcement.
Partial Freeze Sparks Debate
According to local broadcaster KBS, investigators asked Binance to halt roughly 470 million won (about $370,000) in Solana (SOL) linked to the Nov. 27 breach of Upbit, one of Korea’s largest exchanges. But Binance ultimately froze just 17% of that amount — around $55,000 — following a 15-hour delay.
Police and industry watchers say that time matters. The longer it takes to secure stolen assets, the greater the likelihood that funds will be mixed, laundered, or moved through decentralized protocols beyond recovery. Binance reportedly told investigators it needed additional verification before responding.
The hack resulted in unauthorized withdrawals of roughly $36 million in Solana-based assets from Upbit, prompting a wide-ranging investigation and efforts to freeze the stolen tokens across multiple platforms.
Calls for Faster, Standardized Action
Cho Jae-woo, head of Hansung University’s Blockchain Research Institute, told KBS that rapid freezes are critical in early stages of a cyber investigation. He argued that exchanges often cite legal risks as a reason to move cautiously — a factor that can undermine efforts to contain losses during high-speed crypto thefts.
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Cho proposed establishing a global hotline or emergency framework that would allow exchanges to initiate freezes immediately when credible law enforcement alerts appear.
The case highlights the fragmented nature of international crypto enforcement. Centralized exchanges operate across jurisdictions, but law enforcement processes remain localized and inconsistent.
Exchanges Reaffirm Cooperation
An Upbit spokesperson declined to comment directly on the details of the KBS report but said authorities are “actively investigating” and that the exchange has asked major platforms worldwide to block any suspicious inflows connected to the hack.
Binance, in a statement, said it does not comment on specific cases but reaffirmed its commitment to cooperating with global agencies through its official law-enforcement channel.
As authorities continue tracing the funds, the incident is likely to renew debate about whether industry-wide emergency protocols are needed to respond more effectively to fast-moving crypto crimes.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
