Upbit Hacker Evades Railgun’s Checks to Launder $36M Stolen Funds – Here’s How
- How Did the Upbit Hack Unfold?
- Why Did Railgun’s Safeguards Fail?
- The Rising Popularity of Privacy Mixers
- Is Railgun Becoming a Hacker Tool?
- What’s Upbit’s Response?
- FAQ: Understanding the Upbit Hack and Railgun’s Role
In a brazen move, the hacker behind the recent $36 million Upbit exploit has reportedly bypassed Railgun’s privacy protocols to mix stolen funds. Despite Railgun’s zero-knowledge proof checks, the attacker’s addresses slipped through undetected, allowing the laundering process to continue. This incident highlights both the sophistication of modern crypto criminals and the challenges privacy tools face in balancing anonymity with security.
How Did the Upbit Hack Unfold?
The November 2025 multichain attack saw the hacker drain over $36 million from Upbit, including a staggering $30 million in Solana (SOL). Chain analysis reveals the attacker immediately began offloading assets, causing noticeable market ripples. "The rapid SOL sell-off actually impacted DEX volumes that day," noted BTCC analyst @dethective. After converting to USDC, the funds were bridged to ethereum – a classic money laundering pattern previously associated with North Korean hackers.
Why Did Railgun’s Safeguards Fail?
Railgun’s system checks wallets against constantly updated malicious actor databases. However, in this case, the hacker’s addresses were too new. "By the time Railgun’s filters could catch up, the attacker had already moved funds through multiple intermediary wallets," explains our analysis. The final intercepted wallet laundered 410 ETH ($1.6M) before disappearing into the mixer’s privacy pool.
The Rising Popularity of Privacy Mixers
Railgun isn’t alone in seeing increased usage. Tornado Cash now holds over 32,000 ETH in its reserves – a record high according to Dune Analytics data. Meanwhile, Railgun’s native token RAIL has surged 200% in three months, trading at $3.26. This privacy tool renaissance comes as Vitalik Buterin and other crypto influencers advocate for transaction confidentiality.
Is Railgun Becoming a Hacker Tool?
While primarily used for legitimate privacy needs, mixers inevitably attract bad actors. What’s concerning is how quickly exploiters adapt – some now test which wallets WOULD be flagged before moving funds. That said, Railgun maintains its position as a general privacy solution rather than a hacker-exclusive tool.
What’s Upbit’s Response?
The exchange attributes the breach to an internal system flaw involving predictable key hashes and weak encryption, now patched. They’ve assured users no customer funds were affected, though the incident serves as another reminder of exchange vulnerabilities.
FAQ: Understanding the Upbit Hack and Railgun’s Role
How much was stolen in the Upbit hack?
The hacker stole over $36 million, including $30 million in Solana.
Why couldn’t Railgun stop the laundering?
The hacker used freshly created addresses that weren’t yet flagged in Railgun’s databases.
What’s the connection to North Korean hackers?
The Ethereum bridging and mixing pattern matches previous Lazarus Group operations.
How has this affected privacy tools?
Mixers like Railgun and Tornado Cash are seeing record usage despite regulatory scrutiny.
Were user funds impacted?
Upbit states only exchange funds were taken, with customer assets remaining secure.
