Essential Insights
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Laundering through Binance: Hackers moved stolen Upbit funds through over a thousand wallets, with most assets eventually landing in Binance-hosted service wallets.
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Limited Cooperation: South Korean police requested a freeze on 470 million won of stolen Solana tokens; Binance only froze 80 million won (17% of the request), citing a need for further fact-checking.
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Industry Criticism: The slow response from Binance has drawn criticism for undermining collective security, prompting calls for systemic reforms to improve exchange coordination during such incidents.
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Need for Rapid Action: Experts argue for establishing a global hotline or emergency freeze authority among exchanges to facilitate prompt responses and minimize hacking damage.
Binance Faces Criticism for Limited Response to Upbit Hack
Binance, the largest cryptocurrency exchange globally, is under fire following a hack of competitor Upbit. The incident occurred on November 27, 2025, when hackers stole substantial cryptocurrency funds. These criminals laundered the stolen assets through thousands of wallets before transferring them into Binance-hosted service wallets.
On the same day, South Korean authorities requested Binance to freeze approximately 470 million won of stolen Solana (SOL) tokens. However, Binance only froze about 80 million won, roughly 17% of what was requested. The exchange attributed this limited action to a need for further fact-checking. By midnight on November 27, Binance confirmed it had completed the freeze, approximately 15 hours after the initial request.
Industry experts criticized Binance for its slow response. They argue that such delays jeopardize security across exchanges. Hackers later converted most of the stolen SOL into Ethereum (ETH), a move likely motivated by Ethereum’s larger market size and liquidity.
Meanwhile, the Upbit hack has increased scrutiny on how major exchanges manage illicit fund movements. A recent report from the International Consortium of Investigative Journalists revealed that exchanges, including Binance, often serve as conduits for criminal activity, even during ongoing legal scrutiny.
In a related development, Binance co-founder Changpeng “CZ” Zhao recently informed users that co-CEO Yi He’s WeChat account was hijacked to promote a fraudulent meme coin, netting scammers around $55,000.
Experts urge faster response protocols. Cho Jae-woo, director of the Blockchain Research Institute at Hansung University, emphasized the importance of rapid freezes to mitigate hacking damage. He proposed creating a global hotline between exchanges for emergencies. Such a system could enable quicker, preemptive actions to protect users and assets.
The debate surrounding Binance’s response highlights vital challenges within the cryptocurrency sector. As technology evolves, so too must the mechanisms for safeguarding users against threats.
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This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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