TLDR
Upbit halted SOL deposits after detecting abnormal withdrawals from its Solana hot wallet, with roughly 54 billion KRW (about $37 million) in Solana?based assets moved to unauthorized addresses. This prompted a precautionary suspension of Solana network deposits and withdrawals while security checks were performed Bloomberg report.
- Unauthorized Solana?based outflows triggered the halt and an emergency inspection Crypto news summary.
- Upbit said it would fully cover user losses from its own assets Yahoo Finance update.
- A later internal review pointed to a wallet software flaw that may have exposed keys, though not yet confirmed as the direct cause Yahoo Finance follow?up.
Deep Dive
1. What Triggered The Halt
Upbit paused Solana network deposits and withdrawals after unauthorized transfers of about 54 billion KRW in Solana?based tokens were detected moving to external wallets. Coverage indicates the incident centered on Upbits Solana hot wallet rather than a Solana protocol issue Bloomberg report. Several Solana ecosystem tokens were impacted, prompting a systemwide security review Crypto news summary.
The deposit halt was a protective response to a security incident linked to Upbits wallet infrastructure, not a failure of the Solana network itself.
2. User Impact And Response
Upbit said it moved affected funds to cold storage, coordinated freezes with token teams, and pledged to fully reimburse users for losses from its own reserves Yahoo Finance update. Reports also note specific freezes of Solana ecosystem tokens while investigations continued and services would resume gradually after checks Crypto news summary.
For customers, the immediate effect was a pause in deposits and withdrawals on Solana assets, but balances were to be made whole per the exchanges commitment.
3. Possible Root Cause
In a later update, Upbit said an internal wallet vulnerability in signature generation may have exposed private keys. The company emphasized it has not conclusively tied this flaw to the theft but discovered it during the post?incident audit, and kept services halted until fixes and verifications were complete Yahoo Finance follow?up.
The working theory is a wallet software issue on the exchange side. Confirmation matters for when services fully resume and for preventing recurrence.
Conclusion
SOL deposits on Upbit were halted due to a security incident involving unauthorized withdrawals from the exchanges Solana hot wallet, not a Solana network outage. Upbit initiated emergency safeguards, moved funds to cold storage, coordinated freezes, and committed to covering user losses as it investigated and remediated a likely wallet software flaw. Keep an eye on the exchanges notices for the staged reopening of Solana deposit and withdrawal services.
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