Fake Aptos Token Fools Upbit, Users Cash Out Millions Before Exchange Suspends Services

A counterfeit token mimicking the genuine Aptos APT/USD token led to a temporary suspension of its services on the Korean exchange Upbit.

This was due to some individuals successfully depositing and withdrawing the imitation coin.

Data from the blockchain revealed this fake token, stemming from the dubious airdrop site ClaimAPTGift.com, is now in the possession of around 400,000 digital wallets, Coindesk reported.

This event, which highlighted the vulnerabilities in the crypto space, came just before Benzinga's Future of Digital Assets conference on Nov. 14. The conference is expected to delve into such challenges, emphasizing the importance of robust security measures and due diligence in the rapidly evolving digital asset industry.

A user on the microblogging platform X pinpointed a glitch on Upbit that led to the acceptance of these counterfeit tokens.

This happened because the exchange failed to meticulously inspect the token's source code.

MingMingBBS, the co-founder of Tuna_Bot, explained to Definalist, "During the deposit process of $APT coins on UpBit, there was a lapse in type argument verification, leading all transfers to be recognized as genuine APT tokens."

MingMingBBS further elaborated, "Fortunately, a decimal discrepancy between the scam token and the original one averted a major market upheaval.

Without this difference, users could have received a credit of up to ten times their anticipated value."

Upbit, having addressed the issue, reinstated its deposit and withdrawal services for the APT token by Sunday evening, as confirmed in the company's official statement.

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