South Korean Exchanges Suspend SNX Token Amid Depeg Concerns

South Korean exchanges Upbit and Bithumb suspended deposits for Synthetix’s SNX token after the Digital Asset Exchange Alliance (DAXA) flagged the asset for potential risk, according to announcements made on April 24.

DAXA, a self-regulatory body comprising the country’s major crypto exchanges, designated SNX as a cautionary item—triggering immediate risk reviews that could result in delisting or continued monitoring.

Upbit, the country’s largest exchange, added a caution tag to SNX and halted deposits. The platform cited risks linked to the ongoing depeg of Synthetix’s sUSD stablecoin, which is collateralized by SNX. The exchange also questioned the token’s utility, suggesting it could lead to further investor losses. A review is underway to determine whether SNX will remain listed.

Bithumb also blocked SNX deposits and issued a similar cautionary warning but said restrictions could be lifted if the concerns are resolved.

Meanwhile, Korbit and Coinone issued investor alerts and added warning labels to SNX but have not yet suspended trading or deposits.

The sUSD stablecoin dropped to a five-year low of $0.83 in April and fell further to $0.68 by April 18. SNX lost 26% of its value over the past month. Although sUSD has since rebounded to $0.87, it remains below its $1 target.

Synthetix founder Kain Warwick recently urged SNX stakers to adopt a new staking mechanism aimed at restoring the stablecoin’s peg. The project said it has both short-term fixes and longer-term reforms in development but has yet to provide specific timelines.

Warwick warned that stakers who ignore the new sUSD 420 staking pool could soon face “the stick” if incentives alone don’t drive enough participation.

The new mechanism was launched on April 18 and offers stakers a share of 5 million SNX tokens over a 12-month period in exchange for locking up sUSD. Warwick described the current system as “very manual” and lacking a user interface, but said that once it’s easier to use, excuses will run out.

“This is very solvable—and it’s on SNX stakers to solve it,” he wrote. “We tried nothing, that failed. Then we tried the carrot, and that kind of worked. But if you think you’ll dodge the stick, I’ve got some bad news.”

Ethereum-based Synthetix is a decentralized asset insurance protocol that allows users to mint, hold, and trade a wide range of real-world assets by locking tokens into a smart contract. Its blockchain-based derivatives, Synths, cover major asset classes including commodities, fiat currencies, and even stocks. The protocol’s tokenized assets are collateralized through the Synthetix Network Token (SNX) in a decentralized, permissionless, and censorship-resistant method.

Synthetix’s sUSD is a crypto-backed stablecoin minted by locking SNX tokens. Its peg has been under pressure since early 2025, dropping as low as $0.68 last week—over 30% off target—before recovering to around $0.77, according to CoinGecko.