Upbit admits fault for hack, pledges to cover all user losses

South Korean crypto exchange Upbit has taken full responsibility for a recent hacking incident, stating in an official notice that the breach was due to insufficient security management for which there is no excuse. The exchange has reported the cyberattack as required by law and is investigating its cause and scale. Upbit estimated total damages at approximately 44.5 billion won ($32.2 million), with user assets accounting for about 38.6 billion won ($28.0 million). The company pledged to cover all user losses with its own corporate assets. Upbit is currently overhauling its wallet system and will resume deposits and withdrawals once stability is confirmed. The exchange also noted that 2.3 billion won ($1.7 million) of the affected funds have been frozen, leaving its own net losses at around 5.9 billion won ($4.3 million).