Upbit crypto exchange resumes Aptos withdrawals following resolution of scam token issue.

Upbit crypto exchange resumes Aptos withdrawals following resolution of scam token issue.

Upbit Resumes Aptos Deposits and Withdrawals: A Closer Look at the Blockchain Industry

Source: Timon/Adobe

South Korean cryptocurrency exchange Upbit recently faced a temporary halt in Aptos (APT) deposits and withdrawals after a scam token infiltration. This incident sheds light on the importance of proper verification in the blockchain industry.

On September 24, Upbit announced an abrupt pause in Aptos withdrawals and deposits due to an “abnormal deposit attempt.” This raised concerns and prompted an immediate investigation into their wallet system. It was discovered that a fraudulent APT token, known as “ClaimAPTGift.com,” had infiltrated a staggering 400,000 Aptos wallets within a few days of its inception on September 21.

This counterfeit token was part of a typical token airdrop scam, where users are lured with free tokens that contain malicious links redirecting them to phishing websites. Upbit’s mishap can be traced back to a failure in properly verifying the source code of these counterfeit tokens, leading the exchange to mistakenly recognize them as legitimate Aptos tokens.

The consequences were significant, as users who sold the fraudulent APT tokens were able to profit at the expense of others. In response, Upbit’s customer center has initiated the process of seeking refunds from those who sold the scam tokens. This incident highlights the importance of robust verification processes in the blockchain industry to prevent such scams.

Following a thorough wallet inspection on September 24 at 11:00 PM local time, Upbit confirmed the resumption of Aptos deposits and withdrawals. The exchange assured its users that their Aptos transactions were secure, albeit with potential delays in processing and temporary price fluctuations in APT tokens compared to other exchanges. As of now, APT is trading at $5.44, showing a 6.54% increase in the last 24 hours, according to CoinGecko data.

Apart from addressing the Aptos situation, Upbit also made an announcement regarding listing GLMR on its platform. The Korean crypto exchange revealed plans to add GLMR trading support, including the GLMR/BTC trading pair. They are set to open GLMR deposits exclusively for the Moonbeam Network. This news had an immediate impact on the value of GLMR, as the token surged impressively by approximately 35% in the past 24 hours, reaching around $0.23.

The incident faced by Upbit serves as a reminder of the ongoing challenges and necessary precautions within the blockchain industry. With the rise of scams and fraudulent tokens, it is crucial for exchanges to have stringent verification processes in place. Proper source code verification and thorough wallet inspections are essential to protect user funds and maintain trust within the ecosystem.

To provide users with a safer trading environment, exchanges must continuously upgrade their security measures and remain vigilant against potential threats. Additionally, regulatory bodies should work in tandem with exchanges to establish standardized security practices and protect investors from fraudulent activities. A comprehensive approach involving technology, education, and regulation is vital in building a robust blockchain industry.