Binance, which is the world’s largest cryptocurrency exchange (learn more about Binance here), recently faced criticism. The backlash came after it only partially responded to a request from South Korean police to freeze stolen funds from a major hack targeting a competitor.
Let’s break this down:
Big Hack on Upbit
On November 27, 2025, hackers attacked Upbit, a popular cryptocurrency exchange in South Korea (what is Upbit?). They stole a lot of digital money. News reports say the hackers used complicated methods to hide the stolen funds. For example, they used over 1,000 digital wallets and tools called “bridges” and “swaps” to make the money harder to trace.
The stolen funds eventually made their way to Binance. The police and Upbit then asked Binance to immediately freeze about 470 million won worth of stolen Solana (SOL) tokens (explore Solana here). In simpler terms, when you freeze funds, it means stopping the stolen money from being moved or spent further.
Binance’s Response
Binance agreed but only froze about 80 million won worth of the tokens. That’s only about 17% of what was stolen. They said they needed more time to check the facts before freezing the full amount. Additionally, it took Binance 15 hours after the initial request to complete even this limited freeze. By that time, the hackers had already converted most of the stolen Solana tokens into Ethereum (ETH), another popular cryptocurrency (what is Ethereum?), which is easier to sell because it’s widely used.
Binance did not comment much on these events. They only stated they were cooperating with authorities but couldn’t share details during an ongoing investigation.
Why Is This a Problem?
Many experts say cryptocurrency exchanges like Binance are not acting fast enough to stop stolen money from being used. In fact, a major report by the International Consortium of Investigative Journalists (ICIJ) found that criminals often use major exchanges to secretly move stolen funds, especially North Korean hacking groups and scam networks. One reason these platforms might act slowly is because of legal risks, meaning they worry they might be sued for their actions.
An Incident Involving Binance’s Co-CEO
This isn’t the only trouble Binance has faced. On December 11, 2025, Binance’s co-CEO Yi He had her WeChat account hacked. The hackers used it to promote a fake cryptocurrency scheme called a “pump-and-dump scheme.” Such scams trick people into buying worthless coins so scammers can sell them at a profit before the price crashes. They reportedly stole about $55,000 from victims in this scheme.
Experts Call for Change
With hacking and scams on the rise, some experts are saying major reforms are needed. Cho Jae-woo, a director at the Blockchain Research Institute (learn about blockchain technology), suggested creating a global emergency hotline between exchanges. This would allow platforms to work together quickly to freeze stolen funds before they can be moved or converted. He also mentioned that exchanges often delay taking action because they fear being sued by users.
In conclusion, the recent criticism against Binance shows that cryptocurrency exchanges need better systems to deal with hacking and stolen money faster. Without improvements, these crimes will continue to be a major problem in the growing crypto world.