Upbit identified a critical flaw in its internal wallet system during the emergency audit launched after the $30 million theft. The review uncovered a signature-generation error that could make certain data predictable, allowing attackers to reconstruct private keys by analyzing on-chain transactions. The company did not confirm whether the vulnerability caused the breach, but it patched the issue while deposits and withdrawals remain suspended.

The exchange reported losses of 44.5 billion KRW, including 38.6 billion KRW in customer funds, and said it will cover everything with its own reserves. Upbit also confirmed that roughly $1.5 million has already been frozen and that the remaining compromised assets have been moved to cold storage. The platform is performing a full infrastructure review and preparing additional upgrades before reopening operations.

South Korean authorities are investigating the incident and assessing a possible link to the Lazarus Group, though no official confirmation has been issued. Upbit is working with law-enforcement agencies and blockchain teams to recover more funds as Dunamu, its parent company, continues its merger process with Naver ahead of a potential public listing.

Source: https://upbit.com/service_center/notice?id=5803&view=share

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Filed under: News - @ November 28, 2025 7:28 pm