Upbit Hack Sparks FSS Warning on Crypto Security and Trust

As reported by BitcoinWorld, a major security breach at South Korea’s Upbit exchange, resulting in a 44.5 billion won theft, has prompted stern warnings from Financial Supervisory Service (FSS) Governor Lee Chan-jin. The incident has raised urgent concerns about exchange security and the need for stronger regulation. Governor Lee emphasized that the breach strikes at the core of trust in the crypto ecosystem and will influence upcoming virtual asset legislation. The FSS is considering measures such as mandatory security audits, enhanced cold storage rules, and real-time monitoring to prevent future incidents. Upbit has stated it will cover the losses from its own reserves, but the reputational damage and regulatory scrutiny remain significant.