Binance Criticized Over Limited Response to Upbit Hack, Freezing 17% of Requested Assets

Binance, the world’s largest cryptocurrency change, 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 business consultants, 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 big sum of cryptocurrency. As reported by KBS News, the stolen funds have been laundered by way of a posh course of involving over a thousand wallets, with “bridges” and “swaps” used to obscure their path. Most of the laundered belongings ultimately flowed into third-party service wallets hosted on Binance.

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

According to the KBS report, Binance froze solely about 80 million gained, which is roughly 17% of the requested quantity, citing a necessity for additional fact-checking. The change 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’t make particular feedback on the continued investigation” however would proceed to cooperate with authorities. The hackers later exchanged most of the stolen SOL for Ethereum (ETH), possible due to the latter’s massive market measurement and liquidity for cashing out.

Broader Scrutiny on Exchange Security and Compliance

This incident has occurred in opposition to a backdrop of heightened scrutiny on how main exchanges deal with illicit fund flows. A serious investigative report revealed by the International Consortium of Investigative Journalists (ICIJ) final month revealed that felony entities, together with North Korean hackers and rip-off networks, routinely use prime exchanges to transfer funds. The investigation famous that important sums flowed by way of Binance and different platforms even whereas they have been beneath court-appointed displays following main authorized settlements.

Separately, on December 11, 2025, Binance co-founder Changpeng “CZ” Zhao alerted customers 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 round $55,000.

This sample has prompted requires systemic reform, with Cho Jae-woo, director of the Blockchain Research Institute at Hansung University, telling KBS that fast freezes are important to reduce hacking harm however exchanges typically act passively, citing litigation dangers.

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

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