South Korean Exchange Prabang Suspends Service After Hot Wallet Breach

South Korean crypto exchange Prabang suspended service after detecting unauthorized activity involving its hot wallet, with preliminary losses estimated at about $70,000, the exchange said.

Prabang said it found unusual withdrawals from the wallet on Oct. 24. It launched an emergency response and identified a security vulnerability during its review. The exchange described the incident as external unauthorized access and said it reported the matter to relevant authorities on Oct. 26.

The $70,000 figure is an initial estimate, and Prabang said the total loss still needs to be verified. It pledged to compensate customers in full with company assets once the review establishes the amount. The exchange suspended services to protect customer assets while it assesses the incident and calculates compensation.

The incident involved Prabang’s hot wallet and prompted a service halt as the exchange responds to the vulnerability. Prabang’s stated next step is to verify the losses before completing compensation.