Markets News Report
January 29, 2024

South Korean Blockchain Karaoke Platform Somesing Suffers a $11.58M Hack

South Korean Blockchain Karaoke Platform Somesing Suffers a $11.58M Hack

Somesing, a South Korean company developing a mobile karaoke streaming service, announced it had suffered a hack that resulted in 730 million SSX tokens being withdrawn to unknown wallets.

In an official blog post, the platform’s developers said that they have already taken all necessary measures to prevent negative consequences of the incident, including reporting the case to the Cyber Investigation Unit of the National Police Agency. They also announced close cooperation with Klaytn Foundation, the blockchain developer on which the SSX token operates and cybersecurity firm Uppsala Security, an official partner of Interpol.

Several prominent South Korean cryptocurrency exchanges, including Upbit, Bithumb and Coinone, have suspended deposits and withdrawals of SSX tokens and issued warnings regarding possible token price volatility due to the incident. However, despite the swift action taken by the domestic exchanges, the token continues to be traded with no limitations or warnings on such CEXs as HTX and Gate.io.

In the days following the hack, the token’s price dropped more than 10% and is currently trading at a $0.014 mark.

The team is already planning further actions to be taken if the hackers are identified, including freezing the funds on the wallet address belonging to the hacker and ascertaining their personal information for other legal action.

The team also announced that it intends to request a thorough investigation of the case from domestic and foreign agencies, such as the Korea Cyber Investigation Department and Interpol, and urges hackers to return the stolen assets voluntarily.

Delving into the Hack Incident

Somesing aims to incentivize users who upload karaoke recordings through SSX tokens. These tokens are supported by contributions from other users who donate tokens to their preferred singers. The platform operates on Klaytn, an open-source Layer 1 blockchain launched in 2019.

According to the team’s statement, out of the total 730 million SSX tokens stolen, 504 million were undistributed and had initially been planned for circulation by the end of 2025. The other 226 million SSX tokens were already scheduled to be introduced in circulation in the upcoming months.

Initial analysis of the platform’s internal data showed that the hack was unrelated to anyone on the development team. Based on the hacking methods used, it is assumed that an experienced third-party hacking team was behind the breach.

It should be noted that this is not the first hack occurring on the Klaytn blockchain recently. A month earlier, bridging service cross-chain protocol Orbit Chain lost $81.5 million due to an exploit. While cybersecurity challenges have traditionally plagued the DeFi sector, the escalating hacker activity within specific blockchain platforms raises concerns that may extend to users of other projects.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Ilya is an experienced writer specializing in the topics of blockchain technology and crypto markets. Over the years, he has worked on various articles, research publications, and full-fledged reports spanning across different fields. Ilya's passion lies in delivering up-to-date observations and insights to readers, driven by a commitment to contribute to the future landscape of the tech industry.

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Ilya Lazarev
Ilya Lazarev

Ilya is an experienced writer specializing in the topics of blockchain technology and crypto markets. Over the years, he has worked on various articles, research publications, and full-fledged reports spanning across different fields. Ilya's passion lies in delivering up-to-date observations and insights to readers, driven by a commitment to contribute to the future landscape of the tech industry.

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