South Korean exchange DigitalX, formerly known as Korbit, is shutting down Silicon, the in-house Ethereum layer 2 it jointly developed in 2024 with blockchain firms Ozys and Hidow, less than two years after launch and after benchmarking Coinbase’s Base. Silicon stopped accepting new bridge deposits and began shutting down on Sept. 2, 2026, with deposits also reported suspended from Sept. 3 after a Sept. 2 developer notice on winding down its testnet, and users have until Dec. 31, 2026 to withdraw before the chain, block explorer and related wallet access end and remaining assets become unrecoverable. The move aligns with DigitalX’s exit from its proprietary wallet business, including discontinuation of the Korbit Web3 Wallet built on Silicon less than two years after launch. L2Beat data showed about $9.75 million still on Silicon, including $2.66 million of USDC, $2.54 million of WBTC, $2.08 million of ETH and $1.85 million of USDT. Assets bridged from Ethereum can return to mainnet during the window if users with external wallets initiate withdrawals, retain ETH for gas and finish finalization before the deadline, while Silicon-issued tokens depend on remaining liquidity. Built with Polygon CDK and connected to Agglayer, Silicon described itself as non-custodial and warned that unrecovered holdings cannot be restored, underscoring consolidation pressure among smaller Ethereum layer 2 networks.