South Korea’s largest crypto exchange, Upbit has reportedly halted deposits and withdrawal services for Aptos token (APT) on its platform.
The exchange had a technical error in wallet configuration which led to identifying fake Aptos tokens as legitimate APT into users’ accounts. The incident came to spotlight as several users noted that they have received APT without them knowing.
Upbit announced a temporary suspension of deposits and withdrawals for the token as its team gets to know about the situation.
South Korean DeFi user, Definalist described that Upbit wallet failed to check the type argument which leads to identify every token from Aptos chain as APT native token. If any token from Aptos ecosystem was sent to Upbit, it would be misread as APT and in this case it was a fake airdrop token linked to scam website ClaimAPT.com.
“Fortunately, amidst the misfortune, the scammer’s token had a 6 decimal, while the native token had a decimal of 8, so a major disaster was averted,” said Definalist.
If the scam token had 8 decimals, users would have received $25,000 instead of $250 and it could dump the APT market as users are likely to sell it off.