Upbit Halts Aptos Token Services After Fake Token Glitch

Upbit Halts Aptos Token Services After Fake Token Glitch

News, Altcoin news

In the world of cryptocurrency, trust and security are everything. However, sometimes even the most trusted platforms encounter unexpected glitches. South Korea’s biggest crypto exchange, Upbit, found itself in such a situation when it recently suspended its deposits and withdrawals for Aptos token (APT).

The Glitch That Shook Upbit

The root of this suspension can be traced back to a technical hiccup in Upbit’s wallet configuration. This glitch resulted in the misidentification of fake Aptos tokens as legitimate APT, depositing them into users’ accounts without their knowledge. The incident only came to light when several users reported unexpected APT deposits.

In response to the growing concerns, Upbit promptly announced a temporary suspension of Aptos token services. The exchange’s technical team immediately launched an investigation to better understand the scope of the issue.

A Technical Oversight

South Korean DeFi users, Definalist, shed light on the issue, revealing that Upbit’s wallet failed to properly check the type argument. Consequently, every token from the Aptos chain was incorrectly recognized as APT native token. This was a significant oversight on Upbit’s part, as it opened the door for a fake airdrop token linked to the scam website

Fortunately, amidst the misfortune, there was a silver lining. The scammer’s token had a decimal of 6, while the native token had a decimal of 8. This slight discrepancy proved to be crucial, as it prevented a major disaster.

A Narrow Escape

Had the scam token shared the same decimal placement of 8, users would have unwittingly received $25,000 instead of $250. Such an influx of the fake token into the APT market could have had dire consequences, potentially leading users to panic-sell and destabilizing the market.

In conclusion, Upbit’s decision to temporarily halt Aptos token services serves as a reminder of the critical importance of rigorous testing and oversight in the cryptocurrency world. While the glitch was a setback, the community can breathe a sigh of relief, knowing that the scam was averted thanks to a subtle numerical distinction. It’s yet another lesson in the ever-evolving landscape of digital assets.