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Upbit Halts APT Withdrawals Temporarily Due to Counterfeit Aptos Token Deposit

Sep 25, 2023 at 10:05 am

The exchange has successfully reopened, with many considering the situation to have narrowly avoided a potential major market crisis.

Upbit, a prominent Korean exchange, underwent a temporary shutdown of its APT token-related services. This occurred due to the presence of a counterfeit version cleverly designed to mislead users into believing it was the genuine Aptos.

Based on on-chain data, this fraudulent token, originating from the deceptive airdrop platform ClaimAPTGift.com, is currently held in approximately 400,000 wallets.

A user on X (previously Twitter) brought attention to a flaw in Upbit's system. This flaw resulted in the acceptance of these counterfeit tokens because it failed to conduct a thorough examination of the underlying source code.

During the deposit process of $APT coins on Upbit, a lapse occurred in the verification of type arguments. This led to all transfers being identified as native APT tokens. Typically, standard protocols include checks to distinguish between tokens, but in this instance, this safety measure was overlooked. As highlighted by user MingMingBBS, co-founder of Tuna_Bot, in their conversation with Definalist, "In the midst of this unfortunate event, the scammer's token's decimal variance from the authentic token prevented what could have been a significant market disruption. Had it not been for this decimal discrepancy, users might have received ten times the expected value."

While deposits and withdrawals experienced a temporary suspension, Upbit has officially announced the full restoration of services for the token as of Sunday night, Korean time, as detailed in their official statement.

Read more: CYBER Token's Meteoric Rise: Traders Paying 2,000% Premiums in a Social Network Frenzy

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