Upbit suspends Osmosis transfers after network stops producing blocks
South Korea's largest exchange halted deposits and withdrawals for the OSMO token while the Cosmos-based blockchain remains inactive.
Key takeaways
- 1Upbit suspended OSMO deposits and withdrawals due to an Osmosis Chain network outage
- 2Spot trading for the token remains active on the exchange despite the transfer halt
Upbit suspended deposits and withdrawals of Osmosis (OSMO) tokens after the underlying blockchain stopped producing blocks. The exchange, which is the largest by trading volume in South Korea, said the pause is temporary while the network remains unstable. This suspension follows a technical failure on the Osmosis Chain that prevented the network from reaching consensus and processing new transactions.
The halt affects transfers on the Osmosis Chain, a Layer 1 blockchain built within the Cosmos network. Upbit said that while users cannot move tokens in or out of the platform, spot trading for OSMO remains available. The exchange did not provide a specific timeline for when services would resume, stating only that it would monitor the network status before reopening the bridge.
Osmosis is a decentralised exchange protocol and a primary liquidity hub for the Cosmos network. Network halts on Layer 1 blockchains typically occur when validators fail to reach consensus or when developers trigger a pause to address technical bugs. This suspension follows a recent move by the South Korean Financial Services Commission to allow exchanges to freeze withdrawals preventatively when hacking threats are suspected, though Upbit cited a network outage rather than a security breach for this move.
The halt ensures that user funds are not lost or stuck in transit during the period of network inactivity. Traders are waiting for updates from the Osmosis developer team to see when block production resumes and when the chain reaches a stable state. For Upbit users, the immediate impact is limited to the inability to move assets to external wallets, though the price of OSMO may react as liquidity is restricted to the internal order book of the exchange.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.