Home Crypto Crypto exchange Upbit stems fake APT token flood, resumes services

Crypto exchange Upbit stems fake APT token flood, resumes services

by Janine Lindsey

South Korean cryptocurrency exchange, Upbit, has resumed Aptos (APT) token deposits and withdrawals after resolving an issue related to a scam token. The exchange temporarily halted Aptos token services on September 24 due to an “abnormal deposit attempt.” Upon inspection, it was discovered that a fake APT token called “ClaimAPTGift.com” had been created and distributed to 400,000 Aptos wallets.

The fake APT token was likely part of a token airdrop scam, where users receive tokens that contain links leading to phishing websites. However, Upbit’s failure to properly verify the source code of the scam tokens led to the exchange recognizing them as genuine Aptos tokens. As a result, users were able to deposit and sell the fake tokens for Aptos’ market price.

According to Upbit user Definalist, there was a failure to check the type arguments during the process of reflecting APT coin deposits, which caused all the transfers to be recognized as the real APT native token. This flaw allowed users to walk away with funds from the exchange.

Upbit’s customer center is now requesting refunds from users who sold the fake APT tokens. The issue has been resolved, and Upbit confirmed the resumption of deposits and withdrawals after completing a wallet inspection. However, the exchange cautioned that there might be delays in processing transactions and temporary price fluctuations in APT tokens compared to other exchanges.

Currently, APT is trading at $5.31 over the last 24 hours, while the price on Upbit is around $5.56, according to CoinGecko. Upbit has assured users that there are no problems with Aptos transactions going forward.

This incident serves as a reminder of the risks associated with fraudulent tokens and the importance of proper verification processes by cryptocurrency exchanges. It highlights the need for users to exercise caution and conduct their own due diligence when dealing with digital assets.

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