Bithumb, South Korea’s second-largest cryptocurrency exchange, has announced it will terminate trading support for Radiant Capital’s RDNT token due to unresolved security issues.
The exchange stated that the move follows a directive from the Digital Asset Exchange Association (DAXA), an influential consortium of South Korea’s top five exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax.
DAXA’s decision stems from Radiant Capital’s failure to adequately address a recent $50 million security breach. Bithumb explained that DAXA prioritizes industry standards and user protection, and delisting RDNT is seen as the safest option for investors. The exchange noted it took this step only after giving the DeFi protocol time to address the security breach and submit the required materials.
Despite being given time to provide satisfactory explanations and submit the required documents, Radiant Capital did not meet these expectations. Bithumb explained that DAXA prioritizes industry standards and user protection, and delisting RDNT is seen as the safest option for investors.
Bithumb announced that RDNT trading will end on December 12, with withdrawal services available until January 10. After this deadline, users may face challenges withdrawing funds due to a potential lack of technical support, such as mainnet updates or airdrops. Bithumb has urged customers to complete any necessary withdrawals before January 10.
This incident is part of a broader trend in South Korea, where regulatory pressures have led to the suspension or shutdown of multiple cryptocurrency exchanges in 2024. Over a dozen exchanges have reportedly paused or terminated services, leaving around 34,000 users with unclaimed assets totalling 17.8 billion won (approximately $13 million). These funds include over 1.41 billion won in fiat currency, and 16.4 billion won in various cryptocurrencies.
Meanwhile, the country’s top financial regulator, the Financial Services Commission (FSC), announced in September that it had approved a non-profit entity designed to safeguard user’s assets in case a crypto exchange goes out of business. Notably, the regulator claimed the approval came after agitations by DAXA and that it would soon start its operations.
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