South Korean crypto exchange Upbit has designated Synthetix (SNX) as an “investment warning asset” and announced a pause on SNX deposits starting April 24 at 3:00 p.m. KST, following guidance from the Digital Asset eXchange Alliance (DAXA). The move comes after the Synthetix protocol’s stablecoin sUSD lost its 1:1 dollar peg in Q1 2025, dropping as low as $0.83 on April 10 and further to about $0.68 on April 18, which coincided with a roughly 26% decline in SNX over 30 days. DAXA and its member exchanges flagged SNX because sUSD has repeatedly failed to maintain its peg and because SNX is used as collateral within the Synthetix ecosystem, creating spill‑over risk for SNX holders when the stablecoin is unstable. Under the DAXA designation, SNX is subject to enhanced scrutiny and could face outcomes ranging from removal of the warning to eventual delisting, depending on how risks evolve and whether the peg issues are resolved. Upbit, Bithumb and other major Korean exchanges have reacted by suspending SNX deposits and tagging the token with caution labels to alert traders, while Upbit has cited both the depegging risk of sUSD and the perceived lack of robust use cases as factors that may expose investors to losses. The decision underscores how Korean exchanges, acting through DAXA, are increasingly using “investment warning” classifications and deposit controls as investor‑protection tools when a token’s associated stablecoin or core mechanism shows persistent instability.

AI-generated background, compiled from web sources — not editorial content.

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