Upbit, South Korea's leading exchange, is having trouble with a fraudulent deposit. Someone deposited a fake coin to Upbit and Upbit recognized it as APT.
Upbit, South Korea's Largest Exchange, was Subjected to Fraudulent Deposit Transactions
These fake coins were deposited into multiple unspecified accounts on Upbit. Those who bought and sold these coins were called by Upbit and asked for their money back.
It is estimated that approximately 100,000 accounts were affected by the error. These were accounts with Aptos investments at Upbit. In total, fake APT was worth $3.4 billion.
Upbit published an announcement on the subject. The following statements were included in the announcement:
“Due to the maintenance of the Aptos (APT) wallet system, we are suspending the Aptos (APT) deposit and withdrawal service. Once the maintenance is completed, we will resume deposits and withdrawals and will update the resumption of the service through this notification.”
“The exchange is making landline phone calls to confirm the number of victims and request refunds. According to the community, the exchange is calling affected users and telling them, “This is not your property and you need to return it. If you refuse, we may take legal action. “
What Happens Next?
A manhunt will be launched for the culprits, and it won't be hard to find them in South Korea's KYC-heavy cryptocurrency trading market. Offenders will likely face criminal penalties for crimes such as obstruction of business.
*This is not investment advice.