Binance criticized for limited response to upbit hack, freezing 17% of requested assets

Hackers laundered stolen Upbit funds through thousands of wallets before moving most of the assets to Binance-hosted service wallets.

Binance, the world’s largest cryptocurrency exchange, has reportedly only partially complied with a freeze request from South Korean police following a major hack of rival Upbit in late November 2025.

The limited cooperation has drawn criticism from industry experts, who argue that slow responses from major platforms undermine collective security.

A delayed and partial freeze

On the morning of November 27, 2025, hackers hacked Upbit and stole a significant amount of cryptocurrency. As reported by KBS News, the stolen funds were laundered through a complex process involving more than a thousand wallets, using ‘bridges’ and ‘swaps’ to obscure their trail. The majority of the laundered assets eventually flowed into third-party service wallets hosted on Binance.

That same day, South Korean police and Upbit formally requested Binance to freeze approximately 470 million won worth of stolen Solana (SOL) tokens traced to the platform.

According to the KBS report, Binance only froze about 80 million won, which is about 17% of the requested amount, citing the need for further fact-checking. The exchange notified authorities that the freeze was completed around midnight on November 27, about 15 hours after the original request.

In response to questions about the partial freeze and delay, Binance declined to comment, stating that it “cannot comment specifically on the ongoing investigation” but would continue to cooperate with authorities. The hackers later exchanged most of the stolen SOL for Ethereum (ETH), likely due to the latter’s large market size and cash-out liquidity.

Broader control over Exchange security and compliance

This incident took place against the background of increased supervision of the way in which major stock exchanges deal with illegal financial flows. A major investigative report published last month by the International Consortium of Investigative Journalists (ICIJ) found that criminal entities, including North Korean hackers and scam networks, routinely use top exchanges to move money. The investigation found that significant amounts of money flowed through Binance and other platforms even while they were under court-appointed regulators after major legal settlements.

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Separately, Binance co-founder Changpeng “CZ” Zhao warned users on December 11, 2025 that co-CEO Yi He’s WeChat account had been hijacked to promote a fraudulent meme coin, a pump-and-dump scheme that netted scammers around $55,000.

This pattern has led to calls for systemic reforms, with Cho Jae-woo, director of the Blockchain Research Institute at Hansung University, telling KBS that quick freezes are essential to minimize hacking damage, but exchanges often act passively, citing the risks of lawsuits.

He suggested setting up a global hotline between exchanges or a consultative body with emergency freeze authority, to enable faster, preventative action.