Upbit Security Breach: $30 Million in Digital Assets Affected, Wallet Overhaul Underway and Full User Compensation

Upbit—the flagship exchange operated by Dunamu—is addressing a security breach tied to inadequate security governance, according to CEO Wu Jingxi. The group will file notices with Korean regulators and launch a formal probe into the root cause and scope. An on-chain review flagged a vulnerability that could enable inference of private keys, now patched, as activity remains monitored while deposits and withdrawals stay paused.

Initial disclosures indicate an asset impact of about KRW 44.5 billion (roughly USD 30 million), with customers comprising the majority. About KRW 2.3 billion has been frozen and Upbit reserves sit near KRW 5.9 billion. The firm says customer compensation will be funded from its own holdings as remediation proceeds.

Looking ahead, a wallet-system overhaul is underway, and once stability is achieved, digital asset deposits and withdrawals will resume. This incident underscores the necessity of robust security controls and proactive incident response for leading crypto platforms.