Upbit, a South Korean cryptocurrency exchange, has now reinitiated Aptos APT deposits and withdrawals, having resolved an issue that led to the misrecognition of a fraudulent APT token as genuine.
The predicament began on September 24 when Upbit abruptly halted Aptos token services, citing an “abnormal deposit attempt.” This triggered an immediate audit of their wallet system.
The root cause of this issue appears to stem from the introduction of a spurious APT token, “ClaimAPTGift.com,” which managed to infiltrate 400,000 Aptos wallets shortly after its creation on September 21.
It is highly probable that this counterfeit token was part of a typical token airdrop scam, wherein users are indiscriminately airdropped tokens containing links that lead unsuspecting individuals to phishing websites.
Regrettably, Upbit’s failure to thoroughly validate the source code of these counterfeit tokens resulted in the exchange mistakenly categorizing them as authentic Aptos tokens. Numerous Korean users reported receiving APT tokens without ever initiating such transactions themselves, as revealed by user Definalist.
“It appears that during the APT coin deposit validation process, there was a lapse in verifying the type arguments, causing all transfers to be misclassified as the legitimate APT native token,” states the report.
This lapse in oversight allowed those who sold the fraudulent APT tokens to abscond with significant funds. Upbit’s customer support has reportedly commenced the process of reclaiming these ill-gotten gains from users who participated in the sale of counterfeit APT tokens.
Thankfully, the issue has been resolved. As of 11:00 pm local time on September 24, Upbit officially confirmed the resumption of deposits and withdrawals following a comprehensive inspection of their wallets.
“In response to the abnormal deposit incident, necessary actions have been taken, ensuring the seamless execution of your Aptos transactions,” the exchange stated.
Nevertheless, Upbit issued a cautionary note, warning of possible delays in processing deposits and withdrawals, as well as potential temporary price fluctuations in APT tokens compared to other exchanges.
The value of APT has been hovering around $5.31 over the past 24 hours; however, on Upbit, it is currently priced at approximately $5.56, according to data from CoinGecko.
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