Upbit has placed MultiversX token EGLD under a trading caution designation after a security incident on the project’s mainnet disrupted network activity. The South Korean exchange flagged the asset on Sept. 21 after MultiversX confirmed that an actor had attempted to exploit a virtual-machine-level atomicity issue, leading to invalid state changes and a halt in network progression.
The designation does not immediately end trading support, but it puts EGLD through a formal review process. Deposits and withdrawals remain suspended on Upbit, and the exchange said it expects to decide between Oct. 19 and Oct. 23 whether to remove the warning, extend the review, or terminate trading support.
Incident halted chain progression
MultiversX first said on Sept. 19 that it was investigating a potential mainnet problem and focusing on user safety and stable operations. In its initial public notice, the project did not describe the event as an exploit and did not confirm any financial loss.
A later update said an actor had attempted to exploit a VM-level atomicity issue. According to the project, the attempt caused invalid on-chain state changes, prompting developers to stop network progression while preparing a software fix.
The team said the repair would be tested through a shadow fork before any mainnet deployment. It added that rollout would depend on successful testing and coordination with validators, exchanges and infrastructure providers. No public restart deadline was provided.
Exchanges tightened restrictions
Upbit’s warning arrived as multiple exchanges limited EGLD transfers because of the network disruption. The exchange said deposits made after publication of the caution notice cannot be processed normally and would fall under its return procedure, although standard transfers were already suspended.
Other platforms took related steps. Bithumb suspended EGLD deposits and withdrawals on Sept. 19 and said services would remain unavailable until network stability is confirmed. Kraken moved EGLD pairs to cancel-only mode, allowing users to cancel existing orders but not place new ones, while keeping deposits and withdrawals paused.
Coinbase also reported delayed EGLD sends and receives starting Sept. 19 because of the MultiversX network issue. Its buying, selling and fiat services were not affected. MultiversX advised users not to submit or rebroadcast transactions and to avoid moving EGLD or ESDT tokens through exchange rails or cross-chain bridges until further notice.
Upbit review runs into late October
Under Upbit’s digital asset trading-support termination policy, the exchange said it will assess whether the cause of the caution notice has been fully resolved. Its stated review period runs from Sept. 21 through the fourth week of October, with Oct. 19 to Oct. 23 identified as the expected decision window.
Upbit said the review may be extended if further investigation is needed. If the underlying security concerns are not fully resolved, the process could lead to the end of EGLD trading support on the platform.
In explaining the measure, Upbit cited Article 17(1)(e) of South Korea’s Virtual Asset User Protection Act Enforcement Decree, which covers unresolved or unexplained security incidents affecting infrastructure used to issue, transfer or store digital assets.
Price weakened as recovery work continued
Market data cited in the report showed EGLD falling as the incident unfolded. CoinGecko historical figures put the token at a $4.14 close on Sept. 18, before dropping to $3.87 on Sept. 19 and $3.78 on Sept. 20, a decline of about 8.7% from the Sept. 18 close.
Trading volume also rose during the disruption, with roughly $10.18 million recorded on Sept. 20 compared with about $3.35 million on Sept. 18. The timing places the price move alongside the exploit attempt and exchange restrictions, though the data alone do not prove how much of the decline came from the incident.
MultiversX said it was evaluating a targeted recovery process intended to preserve finalized legitimate transaction history while correcting the invalid state changes. The project has not yet disclosed the exact recovery method or identified which transactions, contracts or account states may need correction. It said a full technical incident report would be released after the response is complete and findings are finalized.
Source: crypto.news