Solana tokens rip on Upbit after $32M hack due to halted arbitrage
The post Solana tokens rip on Upbit after $32M hack due to halted arbitrage appeared on BitcoinEthereumNews.com.
As of mid-afternoon South Korea time, Solana-based tokens traded with double-digit gains on Upbit following a hack that stole roughly 44.5 billion won ($32 million). CryptoQuant CEO Ki Young Ju noted that Korean traders began bidding up altcoin prices as arbitrage bots, which normally keep Korean and international prices aligned, stopped operating. The service suspension created an immediate disconnect between Korean and global crypto markets. As of mid-afternoon local time, ORCA traded at a 95.6% premium to global prices on Upbit, while Meteora traded at an 82% premium and Raydium at a 46% premium, according to exchange data. The divergence reflects how heavily Korean retail relies on Upbit, which processes the majority of the country’s digital asset volume. Without active arbitrage keeping Korean won-denominated pairs in line with the dollar markets, local buy pressure drove premiums across Solana ecosystem tokens affected by the breach. Upbit hit with hack South Korean exchange Upbit suspended digital asset deposits and withdrawals on Nov. 27 after detecting unauthorized transfers in Solana network tokens from a hot wallet. The breach occurred around 4:42 a.m. local time when 24 Solana-based assets, including SOL, JUP, ORCA, and BONK, moved to undesignated external wallets. Upbit confirmed cold wallet holdings were not compromised and immediately moved all remaining assets to secure cold storage. CEO Oh Kyung-seok pledged to cover the full loss using the platform’s own reserves. The exchange froze approximately 2.3 billion won worth of Solayer on-chain and continues tracking the remaining funds in cooperation with project teams and law enforcement. Dunamu, Upbit’s operator, revised its initial damage estimate downward from 54 billion won after recalculating asset prices at the time of the breach. Oh stated that customers will face no losses and that a comprehensive security review of the entire deposit and withdrawal system is underway before…
