Upbit, one of South Korea’s leading cryptocurrency exchanges, has been hit by a major setback due to fraudulent activities involving counterfeit tokens. The exchange had to suspend all withdrawals and deposits of Aptos’ native token APT after discovering that scammers had generated fake APT tokens.

The fraudulent activities not only affected the deposit and withdrawal services for the legitimate APT token but also impacted the deposit return process for the counterfeit tokens. As a result, Upbit had to temporarily halt all deposit and withdrawal services until wallet maintenance could be successfully completed.

Upbit assured its users that once the wallet maintenance is finished and deposit/withdrawal support is reinstated, the exchange will resume normal processing. The team also mentioned that returns will be processed sequentially, ensuring that users are not left facing any financial losses.

Scammers managed to deposit a significant number of fake APT tokens into more than 100,000 user accounts through automated means. Users were shocked to find these tokens in their accounts, as they had not initiated any transactions themselves. The fake tokens were identified as a scam token called ClaimAPTGift and were not native to the Aptos Network coin.

Upon discovering the fraudulent tokens, Upbit promptly reached out to users who had inadvertently sold the fake APT tokens, requesting refunds from them. The exchange took quick action to address the situation and minimize the impact on its users.

While Upbit worked to resolve the issue, users experienced delays in deposit processing due to network congestion and other technical disruptions. The exchange acknowledged the inconvenience faced by users and apologized for the unexpected maintenance. Upbit reassured its user base that normal operations would resume once the confirmation process was complete.

Despite the exchange’s swift response, many users expressed their dismay and concerns on social media platforms. This incident has once again raised questions about the safety and reliability of digital asset exchanges, even those considered as industry standard-bearers.

Upbit’s recent encounter with counterfeit APT tokens and subsequent suspension of deposit and withdrawal services has highlighted the need for increased security measures within the cryptocurrency industry. The incident serves as a reminder for both exchanges and users to remain vigilant and take necessary precautions to protect their assets in an ever-evolving digital landscape.

Exchanges

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