Upbit Pauses MATIC Deposits and Withdrawals to Fortify Security Measures

Upbit, one of the largest cryptocurrency exchanges in Asia, has temporarily suspended deposits and withdrawals for the Polygon (MATIC) network. The move comes after the exchange announced a technical review of the blockchain’s security and operational integrity. Users attempting to transact with MATIC on Upbit’s platform are now encountering error messages and system alerts indicating the temporary restriction.

The halt affects both deposit and withdrawal functions for the Polygon network, but users are still able to trade MATIC tokens on Upbit’s exchange. The exchange has not provided a specific timeline for the resumption of normal operations, stating only that the pause is necessary to ensure the safety of user funds. Polygon, a popular layer-2 scaling solution for Ethereum, has previously faced network congestion and smart contract vulnerabilities, which may have prompted the action.

Upbit did not specify whether the suspension was a proactive measure or in response to a reported incident. However, several blockchain monitoring platforms have noted an increase in transaction failures on the Polygon network in the past week. The exchange emphasized that it is working closely with blockchain developers and security auditors to address the issue. In a statement, Upbit said, “We prioritize the security and stability of our users’ assets above all else”.

Analysts suggest that the decision could impact traders who rely on Polygon for fast and low-cost transactions, particularly those engaged in decentralized finance (DeFi) activities. With MATIC being a widely used token in cross-chain interactions, the suspension might lead to a temporary liquidity bottleneck for certain DeFi protocols. Additionally, the move may contribute to a short-term dip in trading volume for MATIC on the platform, though no immediate price impact has been observed.

Upbit has also advised users to monitor the official announcements and support channels for updates. The exchange has previously taken similar actions in the past, particularly during network upgrades or security patches for other blockchains. This latest action reflects the broader industry trend of exchanges adopting stricter risk management practices in response to increasing technical challenges and security threats in the blockchain space.