The South Korean cryptocurrency exchange Upbit has resumed Aptos (APT) deposits and withdrawals after addressing an issue that resulted in a scam APT token being mistakenly identified as genuine. The issue seems to have arisen from a newly created fake APT token known as ‘ClaimAPTGift.com,’ which was distributed to over 400,000 Aptos wallets. This, in turn, led to Upbit mistakenly listing it as a genuine token.
Upon detecting an ‘abnormal deposit attempt,’ Upbit promptly suspended Aptos token services, initiating a wallet system inspection on September 24.
The fake token, which had made its way to 400,000 Aptos wallets after its creation on Sept. 21, was likely part of a typical token airdrop scam in which users are airdropped tokens that contain links pointing unsuspecting users to phishing websites.
However, a reported failure by Upbit to properly verify the source code of the scam tokens led to the exchange recognizing the fake tokens as real Aptos tokens. Reports from several Korean users indicated that they had received APT without sending themselves any, according to X user Definalist.
⚡️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
Not only were users tricked into buying the fake APT token, but users who sold it also mistakenly received funds from the sale. Upbit’s customer center has reportedly started to request refunds from users who sold the fake APT tokens.
As of September 24 at 11:00 pm local time, the crypto exchange Upbit resumed deposits and withdrawals after completing the wallet inspection and confirming all the issue has since been fixed.
A statement from the crypto exchange, said;
“The action against the abnormal deposit attempt has been completed, and there is no problem with your Aptos transaction,”
It however warned that there could be delays in processing deposits and withdrawals, and possible temporary price fluctuations in the APT tokens as compared to other exchanges.
Over the last 24 hours, APT is currently trading at $5.31 however, the price of APT on Upbit is around $5.56, according to CoinGecko.