Upbit Faced Fraudulent Activity With The Aptos Token: How Did APT Respond?
South Korean exchange Upbit suspended the deposit and withdrawal of Aptos tokens on Sept. 24 after recording an abnormal token movement. As it turned out, the incident was related to the creation of a fake APT token, named "ClaimAPTGift.com".
The fake token was created back on September 21 and immediately hit 400,000 Aptos wallets. Phishing links were hidden behind the token's airdrop. However, the fraudsters targeted the South Korean exchange Upbit, which for some reason failed to check the source code of the token and allowed fake APTs on its platform.
Definalist reported on X a "huge and foolish incident" made by the exchange, as the situation led to fake APTs being mistaken for real ones. The confusion led to the owners of the fake tokens selling out and cashing out.
⚡️How did such a huge and foolish incident occur?
— Definalist (@definalist) September 24, 2023
- 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
A bigger accident was prevented by analyst firm PeckShield Alert, which pointed out that there was a slight discrepancy between the real and fake tokens.
Upbit's support team immediately started to fix the problem, demanding refunds from users who sold fake APTs. Token deposits and withdrawals resumed, but Upbit warned users about possible delays in processing deposit and withdrawal requests, as well as significant price volatility.
Interestingly, the incident caused APT's price to rise 5%, reaching $5.6 in the last 24 hours. The trading volume has also increased by 800%. At the time of writing, the token is trading at $5.47. The price increase and the incident have led to a surge in positive sentiment, which may also increase the chances of the uptrend continuing.
Source & Copyright TradingView
