Upbit, Bithumb, and Coinone Put Initia INIT on Trading Caution After Security Incident
By Crypto Wire
October 25, 2026
Upbit, Bithumb, and Coinone escalated Initia (INIT) from deposit freezes into formal trading-caution designations after the still-unresolved mint-to-bridge security incident — a venue-risk beat that lands on top of the halt and reserve chapters already on this desk. TokenPost reports Upbit’s Monday, October 26, 2026 caution notice cites a hacking or other security incident whose cause was unknown or not remedied, covering wallets managed by a virtual-asset issuer or operator and distributed ledgers used to issue, transfer, or store assets. Coinness flashed the same day that Upbit and Bithumb both posted the caution step. This is not a restart, not a refill, and not a post-mortem — it is Korean CEX process catching up to an exploit that already froze the chain.
The operational split matters for anyone still holding INIT on those books. Deposits and withdrawals remain suspended; spot trading can continue under the caution flag. Upbit, per TokenPost, said that if service resumes it will restore withdrawals first and issue a separate notice before deposits reopen — with no resume date attached. Coinone’s notice, registered 2026-10-26 14:00 KST, ties the designation to a October 24, 2026 security incident and says INIT will sit as a trading-caution asset for about one month while the venue reviews facts and user-harm risk. Coinone also restates that deposits and withdrawals have been stopped since 2026-10-24 01:00 KST, that trading itself stays available during the halt, and that deposits arriving while the rail is closed may not credit — return requests are the stated cleanup path. Bithumb’s matching notice (same 14:00 window) lists designation day 2026.10.26, confirms INIT deposits and withdrawals are already stopped, cites the Virtual Asset User Protection Act enforcement language, and schedules a review window for extension, release, or delisting support in the fourth week of November (November 23–27), subject to internal change.
That calendar is the new fact versus earlier “유의 촉구” investor-warning posts from October 24. Caution designation is a harder listing-control step than a volatility advisory: venues keep the order book open while they document unresolved ledger or wallet security risk and leave open a path to delist if the issuer cannot clear the cause. For INIT holders, the forensic read is straightforward — you can still trade a token whose native chain and bridge rails are not in a normal state, against books that will not accept fresh deposits or pay withdrawals until each exchange says otherwise. Thin books plus a frozen L1 are exactly the conditions where caution labels exist to warn about, not to solve.
This desk’s prior Initia chapters still frame the on-chain side. The opening halt piece covered the MoveVM mint-to-bridge exploit and the L1-plus-rollup stop after roughly $2.7 million left the system. The TokenPost timing chapter put assets on Ethereum in 7 minutes 21 seconds. The latest prior LN — Bitquery’s Noble USDC reserve print — said the Initia-facing USDC reserve fell from about $1.09 million to $63 as ordinary withdrawals failed, while real bridge outflows sat near $2.73 million against a much larger face-value mint figure, with roughly 1,135.5 ETH still parked on Ethereum. None of tonight’s exchange notices claim those rails are healthy again. A trading-caution label on INIT while deposits stay closed is consistent with an issuer incident that venues say is not yet cured — not proof that a restart is close.
For NFT and crypto desks watching Initia’s app-chain and rollup stack, the practical risk is settlement and custody, not a floor-price meme. Tokens can still print on Korean books under caution while native finality, bridge exits, and USDC reserve integrity remain the open forensic questions. Do not treat a live INIT candle as evidence the exploit path is closed. Do not assume Coinone’s ~one-month review or Bithumb’s late-November decision window means automatic relisting or automatic delist — both notices leave extension, release, or support termination on the table after review. Attribute loss figures and reserve prints to the prior primary chapters; tonight’s primaries are the exchange process documents themselves.
What to watch on-chain next: Watch whether Initia publishes a patched, audited restart before Korean venues revisit INIT caution; whether Noble’s Initia USDC reserve refills above the post-attack ~$24,000 print; whether wallet 0x358ef0130f7a5aa516dcd81bdc80b18cde41cac8 moves the parked 1,135.5 ETH; and whether Upbit, Bithumb, or Coinone update their notices toward withdrawal reopen, caution release, or delist rather than another advisory restatement.
Bottom line: Upbit, Bithumb, and Coinone put Initia INIT under trading caution after the unresolved October security incident — deposits and withdrawals stay suspended while spot trading may continue, with Coinone citing about one month of review and Bithumb pointing to a late-November decision window.
Disclaimer: This article is provided for informational and educational purposes only. It does not constitute financial, investment, legal, or trading advice. The NFT market is highly volatile, and past performance is not indicative of future results. Readers should conduct their own research and consult qualified professionals before making any decisions related to digital assets. The cover image for this article may have been created using artificial intelligence (AI).
