Binance’s Half-Hearted Response to Upbit Hack Leaves 83% of Stolen Funds in Limbo 😬

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Binance, the undisputed heavyweight champion of cryptocurrency exchanges, reportedly decided to heed only a mere whisper of South Korean police’s desperate request to freeze funds after a monumental hack of rival Upbit in late November 2025. Ah, the drama! 🤦‍♂️

This limited cooperation has, unsurprisingly, sparked a chorus of criticism from industry experts. Their verdict? Major platforms are dragging their feet, and this slow-motion response is jeopardizing the collective security of the crypto realm. How noble! 🤷‍♀️

A Delayed and Partial Freeze

On the morning of November 27, 2025, Upbit’s vaults were breached by hackers, who made off with a hefty sum of cryptocurrency. The stolen funds, as reported by KBS News, took a scenic route through over a thousand wallets, using “bridges” and “swaps” as their GPS to evade capture. Most of the stolen loot found a cozy new home on Binance’s platform.

In a timely response (not really), South Korean police and Upbit requested that Binance freeze about 470 million won worth of stolen Solana (SOL) tokens, neatly traced to its exchange. You’d think this would be a no-brainer, right?

Well, Binance froze a grand total of about 80 million won, which is, you know, roughly 17% of what was asked for. Why? They claimed they needed “more fact-checking” before pulling the trigger. By the time the freeze was “complete,” it was around midnight on November 27-15 hours after the request had been made. Classic! 🙄

When pressed about this paltry freeze and the delay, Binance shrugged it off, mumbling something about not being able to comment on an “ongoing investigation” but assuring everyone they’d “continue cooperating.” Meanwhile, the hackers turned most of the stolen SOL into Ethereum (ETH), likely eyeing the larger market size and liquidity. What a surprise! 🤑

Broader Scrutiny on Exchange Security and Compliance

Of course, this debacle takes place amidst a broader wave of scrutiny on how the biggest exchanges manage illicit funds. A report by the International Consortium of Investigative Journalists (ICIJ) dropped last month, revealing that criminal organizations (including North Korean hackers-hello, surprise!) have been happily using top exchanges to move their dirty money. Binance, naturally, wasn’t left out of this party, with illicit funds flowing through its platform even while it was under court-ordered monitors due to previous legal settlements. A real “we’re on top of it” vibe. 😏

And as if that wasn’t enough, on December 11, 2025, Binance’s co-founder, Changpeng “CZ” Zhao, announced that co-CEO Yi He’s WeChat account had been hijacked for a fraudulent meme coin scheme. The scammers raked in a cool $55,000. Because why not? 😒

This string of events has led to some interesting calls for change. Cho Jae-woo, the director of the Blockchain Research Institute at Hansung University, told KBS that swift freezes are vital to limit hacking damage. However, exchanges are often hesitant to act, citing the ever-looming threat of litigation. How convenient!

Cho’s solution? A global hotline or a consultative body with emergency freeze authority. Fast action to prevent financial carnage. But hey, let’s not hold our breath. 😏

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2025-12-13 01:45