Crypto Crackdown: Upbit and Bithumb Freeze SNX Deposits After DAXA Red Flag
South Korea’s crypto heavyweights Upbit and Bithumb hit pause on Synthetix (SNX) deposits following a warning from the Digital Asset Exchange Alliance (DAXA)—because nothing says ’decentralized finance’ like centralized exchanges playing regulatory whack-a-mole.
The move comes as DAXA flexes its oversight muscles, leaving traders scrambling and SNX holders wondering if their tokens just became illiquid collectibles. Meanwhile, the usual suspects in finance nod approvingly—after all, what’s a crypto winter without some good old-fashioned capital controls?
Upbit Flags SNX with Cautionary Label and Suspends Deposits
In a note, Upbit announced it has placed a cautionary label on SNX and temporarily blocked token deposits.
The exchange cited concerns over the recent depegging of Synthetix’s stablecoin, sUSD, noting that SNX—used as collateral for sUSD—could expose investors to significant risks.
Upbit further highlighted a perceived lack of clear use cases for SNX, stating it would conduct a comprehensive evaluation before deciding on a possible delisting.
Synthetix ( $SNX ) stablecoin’s been off the peg for 50 days.
South Korea said “nah,” and now deposits are frozen till May 2025.
Stablecoin vibes? Not so stable. pic.twitter.com/49WeYR2Zmr
Bithumb followed suit, suspending SNX deposits and issuing a similar warning. However, the exchange indicated that restrictions could be lifted if underlying issues are resolved.
Other major South Korean platforms, including Korbit and Coinone, also issued investor alerts, adding cautionary tags to SNX but stopping short of suspending deposits or trading.
The heightened scrutiny comes after sUSD, Synthetix’s stablecoin, fell sharply below its dollar peg.
On April 10, sUSD dropped to $0.83—the lowest level in five years—before plunging further to $0.68 by April 18. SNX, the native token of the Synthetix protocol, has since declined by 26% over the past month.
Synthetix founder Kain Warwick recently urged SNX stakers to adopt a new staking mechanism aimed at stabilizing sUSD, warning of potential penalties if participation remained low.
The sUSD 420 Pool, introduced on April 18, offers stakers a share of 5 million SNX tokens over a 12-month period if they lock their sUSD in the pool for a full year.
Despite these efforts, sUSD has only partially recovered, reaching $0.87 on April 24 but still failing to regain its peg.
Stablecoin Depegs Remain a Recurring Challenge
Depegs in the stablecoin space are not uncommon. USDC briefly lost its peg in March 2023 after Circle revealed $3.3 billion in reserves were stuck with the collapsed Silicon Valley Bank.
Similarly, TrueUSD (TUSD) dropped below $1 earlier this year amid a wave of redemptions.
Despite the challenges, the stablecoin sector has grown steadily, with total market capitalization surpassing $200 billion in 2025 and transaction volume hitting $27.6 trillion—exceeding the combined annual volume of Visa and Mastercard.
In March, Federal Reserve Chair Jerome Powell affirmed the central bank’s support for developing a regulatory framework around stablecoins during a Senate hearing.
Powell stated that the Federal Reserve supports the creation of a regulatory framework for stablecoins, noting the importance of protecting consumers and savers.
