Upbit Hit by $3.4 Billion Fake Crypto Tokens Scam
Upbit, South Korea's largest cryptocurrency exchange, is currently grappling with a major security breach that has rattled the cryptocurrency community.
The breach was revealed when Upbit’s system mistakenly identified the counterfeit coin as APT, enabling a bot to deposit a substantial amount of these fake tokens into numerous user accounts, affecting approximately 100,000 accounts with APT deposits.
The total value of the counterfeit APT tokens reached an astounding $3.4 billion, marking one of the largest cryptocurrency security breaches to date. There were also reports of Korean users receiving APT tokens without initiating the transactions themselves.
In response, Upbit swiftly suspended APT deposits and withdrawals for wallet system maintenance. The exchange assured users that services would resume once maintenance was complete.
Further investigation by a South Korean crypto specialist, Mingmingbbs, revealed that the fake APT tokens were not the native Aptos Network coin but a deceptive token called “ClaimAPTGift.”
The breach occurred because Upbit’s system failed to properly verify the type of coins being transferred, treating all coins as the same APT token. Fortunately, the scammers’ token had a different decimal system (6) than the genuine one (8), preventing significant disruption.
Despite the incident, investors remained resilient, causing APT’s value to rise by just over 5% in the past 24 hours, with the current price at $5.42.