Upbit initiates manhunt after a fraudulent deposit

Upbit, the largest crypto exchange platform in South Korea, has suffered a malicious attack on the network, and this attack can only be described as awkward for the platform. Reportedly, someone has deposited fake coins in over 100k accounts. These have later been realized as genuine deposits in terms of APT. What makes this awkward is the fact that Upbit is now calling the affected users and asking them to follow the APT refund process.

There are questions regarding how the largest South Korean platform could enable such an activity or even recognize counterfeit coins as deposits. Upbit has yet to provide an explanation for this, but the exchange platform has informed the community that it has temporarily suspended deposits and withdrawals of APT, Aptos. This was done due to scheduled maintenance, which should conclude as soon as possible. Upbit will then publish a notification or update informing the community that the coin can once again be deposited and withdrawn.

The community has come forward to report that Upbit is personally contacting them via landline calls, requesting the return of unclaimed property.

Per statements that have surfaced, it appears more of a warning wherein Upbit has committed to take legal action if users ignore the call or do not initiate the refund process. This is not your property, a user shared a portion of the statement, adding that Upbit exchange has assured to compensate for the difference, if any, according to market conditions. Upbit has also asked the community to trust them with the request.

Upbit is confident that it will find the culprits behind the scam. This is based on South Korea’s crypto trading environment being heavily built on KYC-compliant grounds, which means that every user is legally registered with all their documents.

When caught, the culprits will face criminal charges for causing obstruction of business. Users who refuse to cooperate will face a penalty for using the platform, or rather, for misusing the platform. Simply put, the only chance that users have to be on Upbit is by following the instructions that the platform’s official authorities are asking them to follow.

The question of how Upbit could let this happen is still being scrutinized. It also makes users wonder if the calls they receive are authentic.

Upbit has a lot of explanations to put forward when it comes to recognizing fake deposits as genuine ones. A lot of users have also sold their real coins, compensation for which has to be stated beforehand.

Meanwhile, APT by Aptos has increased 5.99% in the last 24 hours. It is now being traded at $5.43. While this is definitely a rise, it is also a fall from the value of $5.6098 in less than 4 hours.

A justification for how Upbit recognized fake deposits is still awaited.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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