Upbit, Bithumb Suspends $SNX Deposits Citing Korea’s Trading Warning

Leading crypto exchanges Upbit and Bithumb have suspended Synthetix ($SNX) deposits after it was designated as a trade warning commodity by the Digital Asset Exchange Association of Korea (DAXA).

Upbit Suspends $SNX

신세틱스(SNX) 거래 유의 종목 지정 안내

신세틱스(SNX/BTC)는 디지털 자산 거래소 공동협의체(DAXA)에 의하여 거래 유의 종목으로 지정되었습니다.

Synthetix(SNX/BTC) has been flagged with investment warning by Digital Asset eXchange Association(DAXA).

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— Upbit Korea (@Official_Upbit) April 24, 2025

According to reports, due to a debasing incident of sUSD,which is the stablecoin supported by SNX, the crypto received trade warning commodity by DAXA. The observation period for $SNX’s suspension will last until the end of May.

In line with Article 17, Paragraph 1, Subparagraph 5 of the Enforcement Decree of the Virtual Asset User Protection Act, Upbit has announced a temporary suspension of SNX deposits starting today at 15:00 KST.”

According to Upbit, the value of sUSD has recently shown instability, failing to maintain its peg to $1. This deviation poses significant risks to investors, particularly due to SNX’s use as collateral in the sUSD system.

“Despite monitoring the situation, we have determined that the peg issue remains unresolved and may lead to rapid price fluctuations in SNX, potentially harming users,” Upbit stated. The exchange emphasized that SNX currently does not meet important criteria under best practices for digital asset trading support.

The trading caution is applied specifically to the SNX/BTC pair and will remain in effect from April 24 through the fifth week of May. During this period, Upbit will hold a thorough review to determine whether to lift the caution, extend the designation, or proceed with full delisting of SNX from the platform.

Investors are advised that $SNX deposits will not be accepted during the review period and any attempted deposits will be automatically returned. Upbit noted that any decisions regarding the extension or termination of trading support will be communicated through subsequent official notices.

Following the announcement, SNX tanked by 5.01% and is currently trading at $0.6944. The market cap for the crypto stands at $235 million.

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