South Korea's leading cryptocurrency exchange, Upbit, announced on February 2, 2025, a temporary suspension of all Zilliqa (ZIL) deposit and withdrawal services. The suspension is effective from 9:00 a.m. UTC on February 3 and is a direct response to the Zilliqa blockchain's scheduled hard fork, a significant network upgrade.
The suspension is a standard, proactive measure to ensure platform stability and protect user assets during the network transition. It affects only the movement of ZIL tokens on and off the exchange; trading of ZIL against Korean Won (KRW) and other pairs within Upbit's order books will continue uninterrupted. The exchange stated it will reactivate all ZIL-related services once the upgraded network demonstrates sustained stability and its internal systems complete thorough post-fork testing.
The core event driving this action is Zilliqa's planned hard fork, a non-backward-compatible upgrade to its core protocol aimed at boosting network efficiency and reducing transaction costs. Network validators and node operators must upgrade their software to continue participating. "A temporary halt is not a sign of trouble but of operational diligence," explained blockchain infrastructure specialist Dr. Lena Cho, highlighting the necessity for exchanges to create a clean snapshot of user balances to prevent issues like double-spending.
Upbit's announcement, providing over 24 hours' notice, aligns with global best practices and demonstrates compliance with South Korea's regulatory expectations for consumer protection, as enforced by the Financial Services Commission (FSC). The exchange has assured users that all ZIL balances held on the platform are secure and will be unaffected by the upgrade.
For users, the guidance is clear: complete any urgent ZIL deposits or withdrawals before the deadline, and do not send ZIL to Upbit addresses during the suspension. Users holding ZIL in private wallets should ensure their wallet software is compatible with the new forked chain. The event underscores the maturing infrastructure of the digital asset industry, where planned procedures replace ad-hoc reactions.
