South Korean cryptocurrency exchange Bithumb has escalated its response to a security issue surrounding Gnosis (GNO), moving the token to its delisting watchlist just one day after suspending deposit and withdrawal services. The exchange confirmed an abnormal outflow of assets from Gnosis-related wallets and cited damage to the project’s protocol, triggering a sharp decline in GNO’s price.
On June 1, 2026, Bithumb initially halted GNO deposits and withdrawals, citing a potential security concern and heightened price volatility. The exchange provided no specifics at the time but stated the measure was precautionary. Then, on June 2, Bithumb announced it had identified concrete evidence of abnormal asset outflows and protocol-related damage affecting the distributed ledger where GNO is issued and stored. These findings prompted the exchange to launch a formal delisting review under its internal criteria, which include security vulnerabilities and network instability.
The market reacted swiftly, with GNO dropping approximately 12% in value within hours of the watchlist announcement. Bithumb’s review process typically lasts up to 30 days, during which trading support may be restricted or suspended. For GNO holders, the development raises urgent questions about liquidity and asset safety, as a full delisting would force them to withdraw tokens to private wallets or alternative exchanges.
The incident reflects a broader tightening of listing standards across major exchanges, driven by both internal risk management and increasing regulatory pressure in South Korea. Bithumb’s decision underscores the growing scrutiny on protocol integrity and asset security, and the outcome of this review could set a precedent for how exchanges handle similar cases in the future.
