South Korean crypto exchange Upbit restarted APT token operations after the hotchpotch in the last couple of days. Several days earlier, fake APT tokens were reportedly flooding the cryptocurrency exchange platform. Though the illicit activity took place and was called out immediately, there were also questions about Upbit’s loophole that let fake token trading take place.
As reported, on September 21, the ‘ClaimAPTGift’ created allegedly fake APT tokens that were traded over Upbit. Soon, the tokens managed to reach over 400K Aptos wallets through a crypto exchange platform.
However, as soon as the company got to know the situation, it quickly responded and halted the operations related to the Aptos token. The withdrawal and deposit of APT tokens stopped on Upbit’s platform on September 24. Yet, the damage has been done as the fake tokens made it to a significant number of crypto wallets.
The counterfeit token appears to have been involved in a common token airdrop scam, where users receive airdropped tokens that include links leading them to phishing websites. This fraudulent tactic aims to deceive unsuspecting users by luring them with free tokens and then directing them to malicious websites for nefarious purposes.
A failure on the part of Upbit to adequately verify the source code of these fraudulent tokens resulted in the exchange mistakenly acknowledging the fake tokens as legitimate Aptos tokens.
Questions On Upbit’s Verification Process
According to X user Definalist, several users in Korea reported receiving APT tokens without initiating any transactions. This oversight highlights the importance of rigorous verification processes in the cryptocurrency industry to prevent such occurrences.
Consequently, individuals who sold the counterfeit APT tokens were able to profit from this situation. Upbit’s customer support has initiated efforts to reclaim funds from users who traded the counterfeit APT tokens.
In a statement, they mentioned, “The action against the abnormal deposit attempt has been completed and there is no problem with your Aptos transaction.” This incident highlights the importance of enhanced security measures within cryptocurrency exchanges to safeguard users from fraudulent activities.
However, it’s important to note that there may be delays in processing deposits and withdrawals, as well as potential temporary price fluctuations in the APT tokens when compared to other exchanges. Users might need to exercise caution and remain vigilant while the situation is being addressed.
According to CoinMarketCap, the Aptos (APT) token is trading at $5.53, following a 7% increase in the last 24 hours. In the meantime, the APT token trading price on Upbit is around $5.57.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/25/crypto-exchange-upbits-confusing-act-around-aptos-apt-token/