Crypto Exchange Upbit Overcomes Fake APT Token Issue and Resumes Services
Upbit, the popular South Korea-based cryptocurrency exchange, has successfully resolved an issue related to a fake APT token and has now resumed Aptos (APT) deposits and withdrawals. The exchange took immediate action after detecting an abnormal deposit attempt on September 24, which led to an investigation of the wallet system. The problem originated from a newly created fake APT token called “ClaimAPTGift.com,” which managed to find its way into approximately 400,000 Aptos wallets soon after its creation on September 21.
This incident is believed to be a typical token airdrop scam, where unsuspecting users are airdropped tokens that contain links redirecting them to phishing websites. However, Upbit’s failure to properly verify the source code of the scam tokens resulted in the exchange recognizing the fake tokens as real Aptos tokens. Several Korean users reported receiving APT tokens without initiating any transactions themselves.
“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.”
The misidentification of the fake APT tokens allowed those who sold them to walk away with funds. Upbit’s customer center has now begun the process of refunding users who sold the counterfeit tokens.
Fortunately, Upbit swiftly resolved the issue. As of September 24, the exchange confirmed that it has resumed deposits and withdrawals after completing a thorough inspection of its wallets. Although Upbit is back in operation, it warns users about potential delays in processing transactions and possible temporary price fluctuations in the APT tokens compared to other exchanges.
Aptos token is currently trading at $5.31 over the last 24 hours. However, on Upbit, the price of APT is approximately $5.56, as per CoinGecko.
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The Fake APT Token Incident
During an inspection of its wallet system, Upbit discovered an abnormal deposit attempt, which prompted the exchange to halt Aptos token services. The issue was traced back to a newly created fake APT token called “ClaimAPTGift.com.” This fraudulent token was distributed to around 400,000 Aptos wallets after its creation on September 21.
The fake APT token was likely part of a token airdrop scam, where users receive tokens that contain links to phishing websites. However, Upbit failed to properly verify the source code of these scam tokens, resulting in the exchange recognizing them as legitimate Aptos tokens.
Resolution and Resumption of Services
Upbit promptly resolved the issue and completed a thorough inspection of its wallets. As of September 24 at 11:00 pm local time, the exchange resumed Aptos deposits and withdrawals. Upbit’s customer center is currently in the process of refunding users who sold the counterfeit APT tokens.
While Upbit is now operational, it cautions users about potential delays in processing transactions and temporary price fluctuations in the APT tokens compared to other exchanges.
Impact on Users
Due to the misidentification of the fake APT tokens, users who sold them were able to profit from the scam. Upbit has taken responsibility for the issue and is actively working to refund affected users.
During the incident, the price of the Aptos token (APT) experienced some fluctuations. Currently, the token trading price stands at $5.31 over the last 24 hours. However, on Upbit, the price is slightly higher at around $5.56, as reported by CoinGecko.
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