Key Points:
- Upbit halts services due to a counterfeit APT token’s infiltration.
- Scam token exploited a verification lapse, causing users to lose funds.
- Upbit quickly fixes the issue and resumes operations, emphasizing user security.
Following the infiltration of a newly minted counterfeit APT token called “ClaimAPTGift.com” into 400,000 Aptos wallets, crypto exchange Upbit inadvertently mistook it for the genuine APT token.
South Korean cryptocurrency exchange Upbit has reinstated Aptos APT deposits and withdrawals after resolving an issue that involved the misidentification of a fraudulent APT token as authentic.
On September 24, Upbit abruptly suspended Aptos token services in response to an “abnormal deposit attempt,” prompting an investigation of its wallet system.
The problem originated from the creation of a counterfeit APT token called “ClaimAPTGift.com,” which had found its way into 400,000 Aptos wallets since its inception on September 21.
Read Also: Controversy Erupts Over Miss Universe Coin During Philippine Blockchain Week
This counterfeit token was likely part of a common token airdrop scam, wherein users receive tokens that contain links leading them to phishing websites, unbeknownst to them.
However, Upbit’s failure to adequately verify the source code of the scam tokens resulted in the exchange treating the fake tokens as genuine Aptos tokens. Numerous Korean users reported receiving APT without initiating any transactions themselves, as reported by user Definalist.
⚡️How did such a huge and foolish incident occur?
– It seems that during the process of reflecting $APT coin deposits, there was a failure to check the type arguments, and all same functions transfers were recognized as the same APT native token.
– Under normal circumstances,… https://t.co/CvDgTdqnGl pic.twitter.com/8gEx5YnOLH— Definalist (@definalist) September 24, 2023
“It appears that during the process of processing APT coin deposits, there was a lapse in verifying the type arguments, and all transfers of the same functions were mistakenly recognized as the legitimate APT native token.”
This oversight reportedly allowed users who sold the counterfeit APT tokens to make off with funds. Upbit’s customer center has reportedly initiated efforts to request refunds from users who sold the fake APT tokens.
The issue has since been rectified. As of September 24, at 11:00 pm local time, Upbit confirmed the resumption of deposits and withdrawals after completing a wallet inspection.
“We have successfully addressed the issue of abnormal deposit attempts, and your Aptos transactions are now secure,” the exchange stated.
Nevertheless, it cautioned that there may be delays in processing deposits and withdrawals, along with potential temporary price fluctuations in APT tokens in comparison to other exchanges.
Over the past 24 hours, APT has been trading at $5.31, while on Upbit, it is priced at approximately $5.56, according to CoinGecko.
_____________________________________________________________________________________________________
Follow us on Google News, Telegram, Twitter, and Facebook for the latest insights and discussions in the world of Crypto News.
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
