IoTeX (IOTX) faces Upbit caution tag after key exploit
Key Takeaways:
- Upbit flagged IOTX after elevated risk from a recent security incident.
- Private-key compromise on IoTeX infrastructure enabled unauthorized movements via cross-chain bridges.
- DAXA guidelines allow caution tags, deposit suspensions, or escalated investor protections.
Upbit added IoTeX (IOTX) to its transaction alert list after indicators of elevated risk tied to a recent security incident affecting the project. According to CoinCarp’s readout of the exchange notice, member platforms in South Korea’s DAXA framework can apply a “caution” designation, suspend deposits, or escalate actions to protect investors, depending on assessed severity.
The immediate trigger was a private-key compromise involving IoTeX infrastructure that affected cross-chain bridge contracts and enabled unauthorized token movements. Security firm PeckShield identified impacted components and traced outflows, a pattern consistent with exchange risk controls that prioritize limiting inflows from potentially tainted sources.
According to AICoin’s summary of Upbit’s official notice, the exchange announced on February 21, 2026 that IOTX would be tagged a Cautionary Trading Asset. The designation period runs from February 23, 2026 at 15:30 (UTC+8) through March 24, 2026 at 23:59 (UTC+8), with the IOTX/BTC pair specifically flagged. Deposits are suspended during this window; withdrawals remain available, and deposit services will resume only after further notice.
Exchange actions here align with standardized incident response under DAXA, signaling active monitoring rather than an automatic delisting. The status indicates heightened surveillance and may be adjusted as forensic reviews and project-level mitigations progress.
As reported by The Block, the incident was a “private key exploit draining up to $8.8 million from bridge contracts.” The report adds that subsequent assessments narrowed likely losses to about $2 million after containment measures.
At the time of writing, IOTX traded around $0.004248, provided solely as contextual market information.
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