South Korea’s Upbit froze deposits and withdrawals after detecting $36 million in unauthorized outflows from a Solana-network hot wallet. The compromise was isolated to the hot wallet, prompting a full security review. Upbit assured users that lost funds will be covered by reserves. Financial authorities are investigating the incident.

Trading on Upbit continues normally, but deposits and withdrawals are suspended. The company will cover all losses from the security incident. Users do not need to take action to recover their funds, but patience is required during the review process. Regulators are conducting on-site inspections.

The security incident at Upbit coincides with parent company Dunamu’s $10 billion acquisition deal with Naver. Naver Financial will acquire Dunamu in a stock-swap deal, with plans for an IPO in the US. Naver and Dunamu also aim to invest billions in developing Web3 tech and AI ecosystem.

Read more at Cointelegraph: Upbit Freezes Transfers After $36M Hot Wallet Breach