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- Hackers moved the stolen Upbit funds through complex cryptocurrency routes to evade detection.
- Binance froze only a small portion of the assets requested by Korean police.
- Experts urge faster global coordination to limit damage from exchange hacks.
According to a recent report, Binance faced scrutiny after the Korean police requested that the exchange freeze cryptocurrency stolen from Upbit. The request followed a hacking incident that struck the South Korean exchange late last month.
Investigators now believe the response from Binance remained limited and slow, raising wider concerns about cross-border cooperation in crypto crime cases. The attack occurred on the morning of the 27th of last month. Hackers targeted assets linked to Solana on the Upbit platform.
Soon after the breach, overseas blockchain security firms began tracing the stolen funds. Their analysis revealed a carefully planned laundering process. The hackers broke the stolen assets into many smaller pieces. They moved these pieces across more than one thousand wallets.
Hackers Moved Funds Across Chains to Avoid Detection
Each step involved repeated deposits and withdrawals. This method reduced the chance of detection and delayed tracking efforts. The group also relied on blockchain bridges and token swaps. These tools allowed them to change both the coin type and the network.
As a result, the assets jumped across several blockchains in a short time. Investigators later confirmed that most of the Solana-based tokens eventually converted into Ethereum. A large share of the funds then entered third-party service wallets connected to Binance.
Korean police and Upbit acted quickly after the breach. On the same morning, they asked Binance to freeze assets worth about 470 million won, or roughly 370,000 dollars. The request focused on Solana coins that had already moved to Binance-controlled wallets.
Binance reviewed the request and cited the need for additional checks. The exchange froze only about 80 million won in assets. That figure represented around 17 percent of the total amount requested. Binance informed the parties around midnight that day.
Delayed Binance Action Highlights Crypto Enforcement Gaps
The notice came nearly 15 hours after the original request. When local media questioned the exchange, Binance avoided details. The company pointed to ongoing investigations. It also repeated its general stance of cooperation with authorities under proper procedures.
The limited freeze sparked criticism from academic experts. Cho Jae Woo, head of the Blockchain Research Institute at Hansung University, stressed the need for speed. He argued that early freezes play a key role in reducing losses after hacks.
He noted that exchanges often hesitate due to concerns over legal disputes. Cho also proposed structural changes. He suggested a global emergency hotline between exchanges. He further called for a joint consultative body with authority to act fast during crises.
Such tools could allow preemptive freezes before funds vanish across networks. The case highlights ongoing gaps in global crypto enforcement. As digital assets move faster, coordination must also accelerate.
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