Customers were fully reimbursed from reserves and insurance.
Reserves and insurance made customers whole, which is the system working. Neither prevented the theft, which is the distinction between compensation and prevention.
These are the custody configurations structurally exposed to this kind of event. It describes the failure class, not any individual holder.
Whether your own arrangement sits in one of those groups is the question our Custody Independence Standard is designed to answer, and the four questions in Is your custody setup actually safe? walk through it.
Exchange disclosure, Korean regulatory reporting
Figures are as reported by the named sources. Proof of Custody has not independently reproduced the underlying analysis.
Proof of Custody, "Upbit" incident record, proofofcustody.io/incidents/upbit-2025A hot-wallet breach produced unauthorised withdrawals across several tokens. Reported loss: ~$33 to 37M.
Reserves and insurance made customers whole, which is the system working. Neither prevented the theft, which is the distinction between compensation and prevention.
This class of failure could reach: bitcoin left on an exchange. It describes the failure class rather than any individual holder.