South Korea’s Upbit Let Nearly 100,000 Users Cash Out Fake Aptos Token Deposits

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South Korean-based crypto exchange Upbit has allowed up to 100,000 users to withdraw fake tokens, which it mistook for Aptos tokens on Sunday. In an unprecedented scenario, the exchange has seen over 15 million Aptos tokens flushed out, with more than 90% of the transactions from Sunday.

Following the error, Upbit announced it had halted deposits and withdrawals on Aptos wallets, citing system maintenance. However, it has resumed APT services again, starting on Monday.

“Due to the maintenance of the Aptos (APT) wallet system, we are suspending the Aptos (APT) deposit and withdrawal service. We will resume deposits and withdrawals once the maintenance is complete, and we will update the service resumption through this notice,” Upbit announced.

Costly Mistake

Known for its high standards in coin listing, Upbit stands as the biggest crypto exchange in South Korea. However, the centralized crypto firm fell for a cheap token recognition deceit by a fraudster.

The token was part of a scam airdrop by fraudsters to lead victims to phishing websites. The mysterious tokens were created on September 21, and the defrauders attempted to deposit them into Upbit for withdrawals.

Upbit failed to recognize as fake, accepted the deposit, and distributed it to over 100,000 users. Reports claimed that many users who did not make any deposits into their wallets saw the tokens and were able to withdraw them before Upbit spotted the error.

Upbit Resumes Refund Process

Upbit disclosed that it had resumed the refund process for users who were able to withdraw the scam token. The exchange reportedly called affected clients, prompting them to return the money or face legal action.

Aptos deposit and withdrawal services have resumed again in Upbti after the exchange confirmed it had fixed the issue. It, however, warned of potential price variations from other exchanges and delayed transaction processing.

“The action against the abnormal deposit attempt has been completed, and there is no problem with your Aptos transaction,” Aptos stated.

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