Korean authorities say Binance froze only a small portion of the crypto stolen during last month’s Upbit hack, despite an urgent request from police and the exchange to halt the movement of illicit funds.
According to investigators, only 17% of the assets flagged for freezing were actually locked down, local news outlets reported on Friday.
Upbit and police requested an immediate freeze on roughly 470 million won (about $370,000) worth of Solana confirmed to have hit Binance. However, the exchange froze only 80 million won (about $75,000), saying it needed additional verification before taking broader action. The freeze was confirmed around midnight on the day of the incident, roughly 15 hours after the original request.
The attackers repeatedly broke the funds into smaller portions, moved them through multiple chains, and relied on token bridges and swaps to obscure the trail.
“To prevent damage from hacking, a swift initial freeze is essential, but exchanges often cite litigation risks as an excuse for being hesitant,” he said. He added that the industry should consider establishing a global emergency hotline between exchanges or a coordinated body empowered to impose immediate freezes in crisis situations.
That explanation has not satisfied experts in South Korea. Cho Jae-woo, director of Hansung University’s Blockchain Research Institute, argued that rapid intervention is essential to minimize losses.
