KBS, the South Korean broadcaster, reports that Binance has allegedly frozen only a fraction of the funds that authorities claim are related to a hack at Upbit, a prominent South Korean crypto exchange, which occurred on November 27.
On Friday, KBS reported that investigators sought Binance to freeze approximately 470 million Korean won (around $370,000) in Solana (SOL) tokens thought to be linked to the incident. Eventually, the exchange blocked about $55,000 (about 17% of the requested sum) after a 15-hour delay.
The report mentioned that Binance required additional verification before responding to the police’s request.
The Upbit hack resulted in unauthorized withdrawals of Solana-based assets valued at roughly $36 million, leading to a formal police investigation and the exchange’s efforts to track and freeze the stolen funds across various platforms.
The significance of timely initial freezes
KBS quoted Cho Jae-woo, director of Hansung University’s Blockchain Research Institute, stating that swift initial freezes are crucial in minimizing damage during hacking incidents. However, he noted that exchanges commonly cite litigation risks as justification for resisting such requests. He proposed the establishment of a global hotline among exchanges with the authority for emergency freezes to help curb the damage.
This incident underscores how major centralized exchanges react when foreign law enforcement agencies request freezes on assets suspected of being connected to hacking incidents.
Related: South Korea to impose bank-level liability on crypto exchanges following Upbit hack: Report
An Upbit representative stated to Cointelegraph that they refrained from commenting on the incident reported by KBS but emphasized that local law enforcement is “actively investigating” to locate the attackers.
“Upbit is collaborating closely with the authorities and has additionally requested major global exchanges to freeze any assets identified from the associated wallets.”
A Binance spokesperson informed Cointelegraph that they could not comment due to policy, but reaffirmed their dedication to “cooperating with relevant authorities and partners whenever appropriate.”
According to the spokesperson, Binance addresses all law enforcement requests solely through an official channel and collaborates closely with agencies globally to assist in investigations into illicit activities.
Upbit indicated that it would provide further updates as they become available.
Related: South Korea targets sub-$680 crypto transfers in sweeping AML crackdown
