Binance Criticized Over Restricted Response to Upbit Hack, Freezing 17% of Requested Belongings

Binance, the world’s largest cryptocurrency trade, reportedly complied with solely a fraction of a freeze request from South Korean police following a serious hack of competitor Upbit in late November 2025.

The restricted cooperation has ignited criticism from trade specialists, who argue that sluggish responses from main platforms undermine collective safety.

A Delayed and Partial Freeze

On the morning of November 27, 2025, hackers breached Upbit, stealing a major sum of cryptocurrency. As reported by KBS Information, the stolen funds had been laundered by means of a posh course of involving over a thousand wallets, with “bridges” and “swaps” used to obscure their path. A lot of the laundered belongings ultimately flowed into third-party service wallets hosted on Binance.

That very same day, South Korean police and Upbit formally requested Binance to freeze roughly 470 million received price of stolen Solana (SOL) tokens that had been traced to its platform.

Based on the KBS report, Binance froze solely about 80 million received, which is roughly 17% of the requested quantity, citing a necessity for additional fact-checking. The trade notified authorities that the freeze was full round midnight on November 27, roughly 15 hours after the preliminary request.

In response to inquiries concerning the partial freeze and delay, Binance declined to remark, stating it “can not make particular feedback on the continuing investigation” however would proceed to cooperate with authorities. The hackers later exchanged a lot of the stolen SOL for Ethereum (ETH), seemingly because of the latter’s massive market measurement and liquidity for cashing out.

Broader Scrutiny on Change Safety and Compliance

This incident has occurred in opposition to a backdrop of heightened scrutiny on how main exchanges deal with illicit fund flows. A significant investigative report printed by the Worldwide Consortium of Investigative Journalists (ICIJ) final month revealed that prison entities, together with North Korean hackers and rip-off networks, routinely use high exchanges to maneuver funds. The investigation famous that vital sums flowed by means of Binance and different platforms even whereas they had been beneath court-appointed screens following main authorized settlements.

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

This sample has prompted requires systemic reform, with Cho Jae-woo, director of the Blockchain Analysis Institute at Hansung College, telling KBS that fast freezes are important to attenuate hacking injury however exchanges usually act passively, citing litigation dangers.

He urged establishing a world hotline between exchanges or a consultative physique with emergency freeze authority to allow sooner, preemptive motion.

The submit Binance Criticized Over Restricted Response to Upbit Hack, Freezing 17% of Requested Belongings appeared first on CryptoPotato.

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