South Korean cryptocurrency exchange Upbit has suspended Osmosis (OSMO) deposits and withdrawals following a network failure that stopped the blockchain from producing new blocks. However, OSMO trading remains available on the platform.
The exchange announced the restriction on November 13 at 10:21 a.m. Korean time. The disruption also affected Bithumb and Coinbase, which reported problems processing transactions through the Osmosis network.
Upbit said the suspension affects deposits and withdrawals through the Osmosis Chain. Customers can still buy and sell OSMO using their existing exchange balances. However, they cannot move tokens between Upbit and external wallets through the affected network.
The exchange cited Article 17 of South Korea's Virtual Asset User Protection Act enforcement rules as the basis for the restriction. It said transfer services would resume after the network became stable and the exchange completed the necessary safety checks.
Meanwhile, customers with pending deposits or withdrawals may experience processing delays. Upbit also temporarily restricted withdrawal address registrations and deposit refund requests. The exchange said it would process affected transactions after restoring the services.
Blockchain infrastructure provider QuickNode confirmed the disruption in a November 12 incident report. It said Osmosis stopped producing blocks at 22:57 UTC, leaving the network stalled at block height 74,955,152.
QuickNode described the disruption as a “Network-Wide Stall” and placed the incident under investigation. The provider said its systems would begin processing new blocks once the network restarted. The report did not identify the technical cause.
Osmosis operates within the Cosmos ecosystem and supports decentralized cryptocurrency trading. Its blockchain relies on validators to confirm transactions and add new blocks. When block production stops, transfers cannot receive the confirmations needed for completion.
The disruption consequently affected services that depend on the network including cryptocurrency wallets and exchanges. However, the available incident reports did not identify a confirmed security breach or theft of customer funds.
South Korean exchange Bithumb also suspended OSMO deposits and withdrawals on November 13. Its restriction began at 8:43 a.m. Korean time, before Upbit announced its suspension.
Bithumb attributed the decision to interrupted block production on Osmosis. The exchange warned that pending deposits could take longer to appear in customer accounts. However, it allowed OSMO trading to continue during the disruption.
Similarly, Coinbase reported delays affecting OSMO deposits and withdrawals. The exchange said customers could continue buying and selling cryptocurrency, while fiat deposits and withdrawals remained unaffected.
Despite the network failure, Osmosis recorded a daily price increase on November 13. CoinGecko data showed OSMO trading near USD 0.035, although the token remained lower over the preceding seven days.
Upbit has previously restricted cryptocurrency transfers during blockchain disruptions. In August, the exchange suspended Ravencoin deposits and withdrawals following a network consensus problem while keeping trading available.
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