The company announced that it has raised the proportion of funds stored in cold wallets to ninety nine percent, leaving almost nothing in hot wallets that stay connected to the internet.
This change comes after hackers stole 44.5 billion Korean won from one of Upbit’s hot wallets. The shift not only exceeds South Korea’s regulatory requirement of eighty percent cold storage. Also, sets a new standard for asset protection in the country’s crypto market.
Why Cold Storage Matters for Users
Cold wallets are storage systems that remain offline. Because they are not connected to the internet, they are far harder for hackers to access. Hot wallets, on the other hand, stay online to support fast withdrawals and everyday trading. They offer convenience, but they also introduce risk. The recent theft shows how even trusted exchanges can face attacks when part of their systems remain online.
Upbit’s decision to nearly eliminate hot wallet exposure reflects a growing trend in the industry. Exchanges are shifting toward stronger security after repeated hacks across global trading platforms. According to Chainalysis, crypto thefts dropped by over fifty percent this year, partly because more exchanges have strengthened their internal controls and improved storage methods.
South Korea’s largest crypto exchange, Upbit, has announced it will increase the proportion of user assets stored in cold wallets (offline) to 99%, reducing the hot wallet proportion to 0%, following the theft of 44.5 billion KRW from its hot wallet by hackers. The wallet system…
— Wu Blockchain (@WuBlockchain) December 10, 2025
This shift also matters because South Korea has one of the most active crypto markets in the world. Millions of users rely on platforms like Upbit for trading. By moving assets offline, the exchange aims to reduce the chance of future losses and rebuild trust after the incident.
More About Web3 Offline Storage
Filecoin explained that startups building on Avalanche can lower storage costs and improve efficiency by moving archival or rarely accessed data off-chain and onto the Filecoin network. Instead of keeping everything directly on Avalanche, developers can store older or heavier data on Filecoin, where it remains immutable and is verified through cryptographic proofs to ensure accuracy.
Startups on Avalanche (@avax) don’t need to store everything on-chain. They can move archival or rarely accessed data to Filecoin, where it’s stored immutably and verified with cryptographic proofs, and reduces costs without affecting app performance or availability. pic.twitter.com/T7o7vJ5yYa
— Filecoin (@Filecoin) June 22, 2025
This setup keeps apps fast and responsive on Avalanche while giving teams a secure and reliable place to store information they do not need to access often. It also helps projects scale more easily without sacrificing performance or availability.
Disclaimer
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The post Upbit Shifts User Funds to Safer Offline Storage appeared first on Altcoin Buzz.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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