Upbit Hack Raises Scrutiny of Binance’s Emergency Freeze Policy
South Korean authorities say Binance froze roughly 17% of the funds they linked to the 2025 Upbit hack, a figure that has drawn sharp attention to the exchange’s emergency freeze policy and its responsiveness to foreign law enforcement. The limited freeze percentage raises practical concerns about asset recovery and the ability of investigators to secure stolen funds when transfers cross multiple platforms and jurisdictions.
The revelation is likely to intensify regulatory scrutiny and calls for clearer, faster cross‑border cooperation standards between exchanges and investigators. For users and institutional counterparties, the episode underscores lingering trust and transparency issues: exchanges play a pivotal gatekeeping role in freezing or returning illicit proceeds, but their policies and operational readiness vary, potentially affecting the pace and success of criminal asset recovery.