Upbit Overhauls Security With 99% of Assets Now in Cold Storage

South Korea’s largest crypto exchange, Upbit, has completed a major security upgrade. The platform now stores about 99% of user assets in cold wallets, keeping them fully offline. That leaves only a tiny fraction of funds in hot wallets connected to the internet. This move follows a serious wake-up call. Earlier this year, hackers drained 44.5 billion won from an Upbit hot wallet. 

Since then, the company has moved fast. It reviewed its entire wallet system. It tightened internal controls and now, it has nearly removed online exposure altogether. As of late October, Upbit reported 98.33% in cold storage and just 1.67% in hot wallets. The company now plans to push that hot wallet share even closer to zero.

Upbit Surpasses South Korea’s Legal Security Standard

Under South Korea’s Virtual Asset User Protection Act, exchanges must hold at least 80% of customer assets in cold wallets. Upbit already exceeded that rule long before the hack. However, this latest move stretches far beyond compliance. While most local exchanges operate within the 82% to 90% cold storage range, Upbit leads the pack. Lawmakers confirmed that it currently holds the lowest hot wallet ratio among all domestic platforms.

This matters more than it sounds. Hot wallets enable fast withdrawals, but they also carry a higher risk. Cold wallets slow things down. However, they dramatically reduce exposure to external attacks. By shifting nearly everything offline, Upbit is betting that safety now matters more than speed. Even as crypto prices rose and trading activity picked up, Upbit still kept online exposure under control. That consistency has helped the exchange maintain trust during a volatile year.

Why Cold Storage Became the Top Priority

The recent hack changed the tone. Before, cold storage was about best practice. Now, it is about survival. After losing tens of billions of won in minutes, Upbit moved security from the back office to the front page. Company executives approved a full audit of its wallet system. Engineers rebuilt critical infrastructure. Security teams rewrote internal processes. The goal was simple. Reduce attack surfaces as much as possible.

Upbit also designed its new structure for scale. Even during peak deposits and withdrawals, the platform aims to keep online funds near zero. That requires more automation, stronger internal signing controls and tighter withdrawal checks. In short, the exchange is rebuilding how money flows through its system.

Industry Signal and User Confidence

Upbit’s decision sends a clear message to the broader crypto market. Security is no longer optional. It is the main product. CEO Oh Kyung-seok said the company will continue to keep the lowest hot wallet usage in the country. He added that customer asset protection now sits at the center of every company decision. For users, this upgrade comes at the right time. Hacks still hit global exchanges each month. Trust remains fragile. 

By locking nearly all funds offline, Upbit hopes to turn fear into confidence. The strategy also raises the bar for competitors. If the largest exchange in South Korea can operate at near-zero hot wallet exposure, others may soon face pressure to follow. Currently, Upbit has made its choice clear. It will trade some speed for far more security. In today’s crypto market, that may be the smartest bet of all.