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South Korean cryptocurrency exchange Upbit has resumed deposits and withdrawals for Aptos (APT) following the resolution of an issue where a fraudulent APT token was incorrectly identified as the genuine asset.
On September 24, Upbit temporarily suspended Aptos services after detecting an “abnormal deposit attempt,” which triggered an inspection of its wallet system.
The issue stemmed from a newly created fake APT token named “ClaimAPTGift.com,” which was distributed to 400,000 Aptos wallets after its creation on September 21.
The fraudulent token appears to be part of a standard airdrop scam, where users receive tokens containing links that direct them to phishing websites.
Upbit reportedly failed to properly verify the source code of these scam tokens, leading the exchange to recognize the fake tokens as real Aptos tokens. Various Korean users reported receiving APT without initiating any transactions themselves, according to X user Definalist.
“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.”
⚡️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
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This error reportedly allowed users who sold the fake APT tokens to retain their funds. Upbit’s customer service has reportedly begun requesting refunds from users who sold the fraudulent tokens.
The issue has since been resolved. As of 11:00 PM local time on September 24, Upbit confirmed that deposits and withdrawals had resumed following the completion of the wallet inspection.
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“The action against the abnormal deposit attempt has been completed, and there is no problem with your Aptos transaction,” the exchange stated.
However, the exchange warned that there could be delays in processing deposits and withdrawals, as well as potential temporary price fluctuations for APT tokens compared to other exchanges.
APT is currently trading at $5.31 over the last 24 hours, while the price of APT on Upbit stands at approximately $5.56, according to CoinGecko.
Price of the Aptos token, APT. Source: CoinGecko.
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