Binance's Partial Compliance and Crypto Recovery
- Binance’s delayed partial compliance affects fund recovery processes.
- Binance froze 17% of requested funds voluntarily.
- Authorities investigate potential ties to North Korean entities.
Korean authorities requested Binance to freeze approximately $370,000 in Solana tokens linked to the November 2025 Upbit hack, but Binance only partially complied after a verification delay.
The incident raises concerns over exchange cooperation in fund recoveries, impacting trust and highlighting vulnerabilities in crypto security protocols, including cross-chain asset movement challenges.
Korean authorities sought Binance’s help to freeze funds from the Upbit hack, but only achieved partial success. Binance acted slowly, freezing merely 17% of requested assets after a 15-hour delay. This discrepancy raises questions about procedural efficiency.
Binance, the global exchange, froze between $55,000 and $75,000 in Solana (SOL), a small part of the $370,000 requested. Despite cooperation claims, they withheld detailed explanations, reflecting ambiguities in international regulatory compliance.
“Korean authorities connected the funds to possible North Korean actors, indicating an intricate cyberattack and urging international cooperation in security protocols.” – Cho Jae-woo, Director, Hansung University Blockchain Research Institute
The slow response by Binance potentially affects the victims’ asset recovery. The freeze delay highlights vulnerabilities in cross-border crypto investigations, necessitating better systems for emergency response in the cryptocurrency arena.
The event highlights ongoing challenges in handling cryptocurrency thefts and potential fund laundering. Upbit parent company Dunamu’s decision to reimburse the users from reserves underscores the issue’s impact on trust and market stability.
Tracing involved over a thousand wallets across multiple blockchains and bridges, with the Korean authorities connecting funds to possible North Korean actors. This indicates an intricate cyberattack, urging international cooperation in security protocols.
Historical data suggests a growing trend of sophisticated crypto scams and hacks. This underscores the need for enhanced security measures and rapid international responses to mitigate losses and enhance systemic resilience. Innovative security technologies may counter future actions.
