South Korean Karaoke Service SOMESING Suffers Hack
Over the weekend, South Korean Karaoke service SOMESING experienced a hack that resulted in the theft of hundreds of millions of SSX tokens. This incident has prompted crypto exchanges in South Korea to take precautionary measures to minimize risks for investors.
Upbit Issues Security Risk Alert
In response to the SSX token hack, Upbit, the largest crypto exchange in South Korea, released a press statement on January 29 alerting its users about the security risks associated with the token. The exchange also highlighted the price volatility following the attack.
Bithumb and Coinone, among other exchanges, have suspended deposits and withdrawals of SSX tokens as per SOMESING’s request.
Upbit Suspends SSX Token Transactions
Upbit has temporarily halted SSX token deposits and withdrawals in line with DAXA’s designation of the token as a “cautionary asset.” This decision aims to protect investors and is based on suspicious movements from SOMESING Foundation wallets and changes in distribution volume.
The exchange will review the digital asset until February 14, 2024, to determine whether to extend or lift the “cautionary asset” designation or terminate transaction support.
Unknown Wallet Receives 730 Million Tokens
SOMESING reported that on January 27, approximately $11 million worth of SSX tokens (730 million tokens) were withdrawn to unknown wallets. Out of these, 504 million were undistributed tokens planned for circulation by 2025, while 226 million were meant for circulation supply plans. As a result, there are now 489 million over-circulating SSX tokens.
The foundation believes that the hack was conducted by professional hackers and has reported the incident to the Cyber Investigation Unit of the National Police Agency and Interpol.
Measures to Track Stolen Funds and Identify Hackers
SOMESING has taken emergency measures, including requesting exchanges to temporarily suspend SSX token deposits and withdrawals. The foundation plans to collaborate with the Klaytn Foundation and Uppsala Security to track the transaction history of the stolen tokens, freeze seized assets, and potentially unveil the hacker’s identity for legal action.
Price Drop Following Hack
Prior to the hack, the SSX token traded in the $0.017-$0.018 range. However, after the incident, its price dropped to $0.015 and currently stands at $0.01413, reflecting a 12.4% decrease in the last 24 hours.
Hot Take: SOMESING Hack Highlights Security Concerns in Crypto Exchanges
The recent hack on South Korean Karaoke service SOMESING has raised concerns about security in crypto exchanges. With hundreds of millions of SSX tokens stolen, exchanges like Upbit have taken immediate action to protect investors by suspending transactions involving the affected token. This incident serves as a reminder that even established platforms are vulnerable to cyber attacks, emphasizing the need for robust security measures across the crypto industry. The collaboration between SOMESING, Klaytn Foundation, and Uppsala Security to track stolen funds and identify hackers is a promising step towards holding perpetrators accountable. However, it is crucial for exchanges and users alike to remain vigilant and prioritize security in order to prevent similar incidents in the future.
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