Massive $11.5 Million Hack Hits South Korean Crypto Karaoke Platform

Somesing Loses $11.58 Million in Token Hack

Somesing, a blockchain-based social karaoke platform in South Korea, experienced a security breach on Saturday resulting in the loss of 730 million of its native token SSX, equivalent to $11.58 million. The hacked amount included 504 million undistributed SSX tokens and 226 million SSX already in circulation. Somesing clarified that the hacking incident was not perpetrated by any member of its team and appears to have been carried out by professional hackers specializing in virtual asset hacks.

Investigation and Legal Action

Somesing has reported the incident to the National Police Agency and plans to involve Interpol in tracing the attacker. The platform is working with the Klaytn Foundation and Uppsala Security to identify the perpetrator and freeze their assets. Major South Korean crypto exchanges, including Upbit, Bithumb, and Coinone, have suspended SSX deposit and withdrawal services at Somesing’s request to mitigate price volatility.

Somesing’s Incentivized Platform

Somesing operates on the Klaytn blockchain and encourages users to upload karaoke recordings by rewarding them with tokens. Singers receive 60% of the donated tokens, while 20% goes to Somesing for platform maintenance, and the remainder is allocated for copyright fees and community support.

Cybersecurity Concerns Persist

The crypto industry continues to grapple with cybersecurity challenges. Recent incidents like the $81.5 million hack on Klaytn-linked protocol Orbit Bridge highlight ongoing vulnerabilities. However, overall crypto hack volumes decreased by over 50% in 2023 compared to 2022.

Hot Take: Protecting Crypto Assets Requires Vigilance

Crypto platforms must remain vigilant to protect their assets from hacking attempts. The Somesing incident serves as a reminder of the importance of robust security measures and collaboration with law enforcement agencies to track down perpetrators. While the industry has made progress in reducing hack volumes, ongoing efforts are necessary to ensure the safety of digital assets.