Upbit, Bithumb and Coinone Suspend IOTX Deposits/Withdrawals amid IoTeX Security Investigation
Three major South Korean exchanges — Upbit, Bithumb and Coinone — have temporarily suspended IOTX deposits and withdrawals following alerts of a potential security incident in the IoTeX network. Each exchange cited the need to investigate vulnerabilities in deposit/withdrawal mechanisms; spot trading of IOTX (KRW and crypto pairs) remains active. The coordinated halt likely stems from shared threat intelligence or similar internal detections and aims to protect user assets while teams audit node configurations, transaction finality and any smart-contract or protocol risks. The pause triggered an immediate 8–12% short-term drop in IOTX price on global markets, though Korean exchange volumes stayed active, indicating position adjustments rather than panic selling. Exchanges will resume transfers only after the IoTeX core team and exchange engineers verify fixes and network stability; timelines range from 24 hours to several days depending on findings. Traders should note that custody remains reportedly secure, but deposit/withdrawal limitations can affect liquidity, arbitrage, and ability to move holdings off-exchange until services are restored.
Neutral
The suspension is a precautionary security measure rather than a confirmed breach of project fundamentals. Short-term impact: likely bearish pressure — evidenced by the 8–12% price drop — because deposit/withdrawal freezes reduce liquidity, hinder withdrawals for arbitrage or safe custody, and raise uncertainty among traders. However, the continuation of spot trading limits panic and allows price discovery, while exchanges’ transparent communication helps stabilize sentiment. Long-term impact: likely neutral if the issue is resolved quickly and no protocol exploit is found; confidence recovers when audits and patches are confirmed. If the investigation uncovers a serious protocol or smart-contract vulnerability, the long-term outlook could turn bearish, eroding trust and listing support. Comparable past events (token withdrawal halts by major exchanges) show immediate volatility and reduced liquidity, but markets often recover after clear fixes and coordinated communication. Traders should monitor official exchange and IoTeX updates, on-chain anomaly reports, and any security advisories from auditors to time entries or exits.