Two major South Korean cryptocurrency exchanges, Upbit and Bithumb, have halted deposits for Synthetix (SNX) tokens due to concerns raised by the Digital Asset Exchange Alliance (DAXA). DAXA, which sets industry standards for South Korean exchanges, flagged SNX as a potential risk, prompting exchanges to conduct thorough evaluations to decide on further action, including potential delisting. Upbit and Bithumb have both blocked SNX deposits on their platforms, citing the risk of Synthetix USD (sUSD) depegging, which could lead to investor losses due to volatility. Upbit indicated a lack of use cases for SNX and is considering delisting the asset. Bithumb, on the other hand, may reverse its decision based on internal circumstances. Other South Korean exchanges like Korbit and Coinone have also issued alerts cautioning traders about SNX. The stablecoin sUSD, collateralized by SNX, faced challenges in maintaining its dollar peg, dropping to $0.83 on April 10 and further to $0.68 on April 18. Synthetix’s founder, Kain Warwick, issued a warning to stakers to adopt a new staking mechanism to address sUSD depegging issues. Despite a 27% price increase in sUSD, the stablecoin has not yet recovered its dollar peg. The situation remains precarious as the industry monitors further developments.