In a series of significant operational moves, two of South Korea's leading cryptocurrency exchanges, Upbit and Bithumb, have announced temporary suspensions of services for specific tokens, highlighting the ongoing technical and structural challenges within the digital asset ecosystem.
Upbit Suspends ZeroG (0G) Due to Network Issue
Upbit, operated by Dunamu Inc., has temporarily suspended all deposit and withdrawal services for the ZeroG (0G) token. The exchange cited an unresolved network issue that potentially compromises transaction integrity and user fund security. The suspension was enacted immediately as a preventative security measure. Spot trading of 0G against the Korean Won (KRW) and other cryptocurrencies on Upbit's internal market remains operational, but the inability to move tokens creates a closed-loop system, isolating 0G liquidity on the exchange.
The specific nature of the "network issue" was not disclosed, but it is suspected to relate to core components of the 0G blockchain, which positions itself as a high-performance, modular blockchain focusing on scalability and data availability. Upbit has committed to providing updates on service resumption, which is entirely dependent on the 0G development team or network validators resolving the underlying technical problem.
Bithumb Halts STG for LayerZero (ZRO) Token Swap
In a separate but concurrent development, Bithumb has announced the suspension of all services for Stargate Finance (STG) tokens to facilitate a planned token swap to LayerZero (ZRO). This action follows the definitive acquisition of the Stargate Finance project by LayerZero Labs.
Bithumb has provided a strict timeline: deposits and withdrawals for STG will suspend at 3:00 a.m. UTC on March 24, 2025, followed by the halt of all STG trading pairs at 5:00 a.m. UTC on the same date. The exchange will handle the technical conversion of user-held STG to ZRO automatically based on a ratio set by the LayerZero foundation. Trading for the new ZRO token on Bithumb will commence in a separate announcement following the swap's completion.
This consolidation is viewed as a strategic move to unify governance and liquidity under the LayerZero protocol following its acquisition of Stargate, a core application built on its omnichain interoperability technology.
Regulatory and Market Context
Both exchanges operate under South Korea's stringent regulatory environment overseen by the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU), which enforces high standards for consumer protection. Analysts note that prompt action during network instability or major asset transitions is a sign of operational maturity and regulatory compliance, prioritizing user asset safety over uninterrupted market access.
The immediate market impact for 0G may include increased selling pressure on Upbit or artificial price stability due to halted arbitrage. For STG, the pre-swap suspension is a standard procedure to ensure an orderly transition to the new ZRO token.
