South Korean exchanges flag Initia token following exploit

South Korea’s two largest cryptocurrency exchanges, Bithumb and Upbit, have designated Initia’s INIT token as a trading-caution asset following a security incident. The exchanges acted in coordination on October 26, citing the Virtual Asset User Protection Act after a network exploit occurred that has not yet been identified or resolved.

Bithumb suspended INIT deposits and withdrawals, noting that the security incident occurred on the virtual-asset wallet or distributed ledger where the asset is issued or stored. Upbit followed with a similar designation for the INIT/BTC and INIT/USDT pairs, stating the unresolved incident creates a possibility of user harm. Both exchanges have blocked deposits and withdrawals for the token. The current designation is set to run through the fourth week of November, at which point Upbit will decide whether to extend the review, lift the designation, or end trading support.