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South Korean Web3 Music Service Somesing Loses $11.58 Million in Token Exploit

Somesing, a popular blockchain-based social karaoke platform in South Korea, has fallen victim to an exploit resulting in the loss of approximately $11.58 million.

In a recent Medium post, the platform revealed that 730 million of its native token SSX had been compromised.

The attack targeted 504 million undistributed SSX tokens, which were initially planned for circulation by the end of 2025, as well as 226 million SSX tokens held by the Somesing foundation that were already in circulation.

Somesing confirmed that the hack was not perpetrated by any member of its team and speculated that it was carried out by professional hackers specialized in targeting virtual assets.

Somesing Reported the Incident to Authorities

In response to the breach, Somesing said it has reported the incident to the National Police Agency and intends to involve Interpol in the investigation.

The company is working closely with the Klaytn Foundation, a local blockchain entity, and Uppsala Security, a firm partnered with Interpol, to track down the attackers.

Once the perpetrators are identified, Somesing plans to freeze the stolen assets and pursue legal action.

BREAKING: Blockchain-powered karaoke app Somesing has been hacked, resulting in the theft of $11.58 million in SSX tokens. The incident, which occurred on Jan. 27, exposes vulnerabilities in crypto platforms. #CryptoSecurity #SSXHack pic.twitter.com/qXSW8SnHWX

— Ryù (@Ryu_Tenchi) January 29, 2024

In light of the security breach, major South Korean cryptocurrency exchanges, including Upbit, Bithumb, and Coinone, have temporarily suspended the deposit and withdrawal of SSX tokens.

These exchanges have warned their users about potential price volatility resulting from the exploit. However, HTX and Gate.io, where the token is also listed, have not issued similar warnings.

Somesing operates on the Klaytn blockchain, offering incentives to users who upload karaoke recordings by rewarding them with SSX tokens.

These tokens are funded by other users who donate tokens to their favorite singers.

Singers receive 60% of the donated tokens, while Somesing retains 20%, and the remainder is allocated to copyright fees and community maintenance.

The incident highlights the ongoing challenge of cybersecurity in the cryptocurrency industry.

Just earlier this month, the Klaytn-linked protocol Orbit Bridge suffered an $81.5 million hack.

SK Exchanges Blocked $82M in Romance Scam Transactions

Last year, South Korean crypto exchanges reportedly blocked over $82 million worth of transactions linked to romance scams.

In a recent statement, the crypto exchange Coinone claimed catfishing and other romantic scams that make use of crypto were now “rampant” in South Korea.

Coinone said that it had halted over $2.6 million worth of romance scam-linked trades. The firm said it used an “abnormal transaction detection system” and “24-hour monitoring” network to protect customers.

The announcement came days after a warning from the Financial Supervisory Service (FSS).

On January 22, the FSS claimed that there had been a rise in crypto-related scams on social media sites.

The regulator told the public to beware of romance scammers. The FSS also warned of the dangers of unsolicited investment-related “recommendations and advice.”

The regulator said that the public should be “particularly” wary of “people of the opposite sex or strangers who say they will help with investment.”

The post South Korean Web3 Music Service Somesing Loses $11.58 Million in Token Exploit appeared first on Cryptonews.

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