Aptos

<p class="is-style-lead">South Korea’s top crypto exchange, Upbit, has fallen victim to a fraudulent deposit incident, throwing its operations into chaos.</p> 
<p>On Sept. 24, Upbit reportedly halted the depositing and withdrawal of Aptos <a href="https://crypto.news/price/aptos/" target="_blank" rel="noopener noreferrer nofollow">(APT</a>) tokens after discovering that some of them were fake.&nbsp;</p> 
<p>Apparently, an unknown entity managed to deposit <a href="https://yajin.org/papers/sigmetrics21.pdf" target="_blank" rel="noopener noreferrer nofollow">counterfeit</a> coins, which Upbit’s systems erroneously recognized as APT tokens, into the exchange. Consequently, fake coins — identified as “ClaimAPTGift” — were disseminated into several unspecified accounts.</p> 
<p>The information was first made public by “Definalist,” an X account run by several South Korean crypto traders.&nbsp;</p> 
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   <p lang="en" dir="ltr">Amazing Korean exchange upbit incident today<br><br>1. The Largest S.Korean exchange <a href="https://twitter.com/Official_Upbit?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@Official_Upbit</a> , abruptly halted Aptos' deposits and withdrawals, citing a wallet system maintenance without any specific reason<br><br>2. Various Korean users have posted authentication claiming that they… <a href="https://t.co/OjfCwhB4eV" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/OjfCwhB4eV</a></p>— Definalist (@definalist) <a href="https://twitter.com/definalist/status/1705900412208029894?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 24, 2023</a> 
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<p>The aftermath of this event has been marked by confusion and uncertainty. According to Korean web3 news outlet Web3 Builders, Upbit, unsuspecting of the counterfeit deposit, <a href="https://web3builders.info/south-koreas-largest-exchange-upbit-suffers-a-fraudulent-deposit/" target="_blank" rel="noopener noreferrer nofollow">allowed</a> the trading of the fake coins, which had a total value of $3.4 billion, affecting an estimated 100,000 account holders.&nbsp;</p> 
<p>Per the report, the exchange is now scrambling to rectify the situation, reaching out to those who traded the fake coins and soliciting their return.</p> 
<p> You might also like: <a href="https://crypto.news/hong-kong-police-arrest-11-people-in-ongoing-jpex-crypto-investigation/" rel="noopener noreferrer nofollow"> Hong Kong police arrest 11 people in ongoing JPEX crypto investigation </a> </p> 
<p>In response to the incident, Upbit issued a <a href="https://upbit.com/service_center/notice?id=3747" target="_blank" rel="noopener noreferrer nofollow">statement</a> suspending the deposit and withdrawal service of APT. The exchange has also reportedly embarked on a rigorous process of engaging the affected users via telephone calls, explaining the situation, and requesting the return of the fake coins.</p> 
<p>Looking ahead, Web3 Builders has suggested that efforts are underway to track down the individuals responsible for the counterfeit coin deposit. Given South Korea’s stringent <a href="https://crypto.news/learn/what-is-kyc-in-crypto/" target="_blank" rel="noopener noreferrer nofollow">Know Your Customer</a> (KYC) regulations in the crypto market, it is likely that the culprits will be apprehended and face charges.&nbsp;</p> 
<p>Definalist also shared a possible explanation offered by a co-founder of the TunaBot chatbot of how the scammers managed to get the fake APT tokens into the <a href="https://crypto.news/binance-remains-the-biggest-exchange-upbit-outperforms-coinbase-okx-in-july-report/" target="_blank" rel="noopener noreferrer nofollow">Upbit</a> system.</p> 
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   <p lang="en" dir="ltr">⚡️How did such a huge and foolish incident occur?<br><br>– It seems that during the process of reflecting <a href="https://twitter.com/search?q=%24APT&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$APT</a> coin deposits, there was a failure to check the type arguments, and all same functions transfers were recognized as the same APT native token.<br>– Under normal circumstances,… <a href="https://t.co/CvDgTdqnGl" target="_blank" rel="noopener noreferrer nofollow">https://t.co/CvDgTdqnGl</a> <a href="https://t.co/8gEx5YnOLH" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/8gEx5YnOLH</a></p>— Definalist (@definalist) <a href="https://twitter.com/definalist/status/1705916604473901076?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">September 24, 2023</a> 
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<p>According to the co-founder, who goes by the X handle @mingmingbbs, the incident arose due to a technical oversight during the deposit process of the APT token. A fault in the system caused it to recognize every function as the same APT token. Apparently, it meant any coin from the <a href="https://crypto.news/aptos-microsoft-partner-to-fuse-ai-with-blockchain/" target="_blank" rel="noopener noreferrer nofollow">Aptos</a> ecosystem sent to Upbit’s wallet was erroneously treated as an APT native coin.&nbsp;</p> 
<p>However, a serious crisis was averted due to the fake token having six decimals, unlike the native Aptos token’s eight. In @mingmingbbs’s estimation, had the fake token also used the 8-decimal system, thousands of users would have flooded the market with the inflated APT, wreaking havoc on the exchange.</p> 
<p> Read more: <a href="https://crypto.news/crypto-accounts-for-70-of-south-koreas-overseas-assets/" rel="noopener noreferrer nofollow"> Crypto accounts for 70% of South Korea’s overseas assets </a> </p>

Upbit falls victim to fraudulent deposit incident

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