SCAMSSECURITY

South Korean blockchain music platform Somesing hacked for tens of millions of dollars, PentaShield: Hackers to succeed in 2023 with 2 billion won

share
South Korean blockchain music platform Somesing hacked for tens of millions of dollars, PentaShield: Hackers to succeed in 2023 with 2 billion won

The Block reported that South Korea's blockchain-based karaoke platform Somesing was hacked on Saturday, resulting in a loss of over 700 million native tokens $SSX, valued at approximately $11.5 million. The team stated that the incident was not caused by internal members and has been reported to the South Korean authorities and police.

What is Somesing?

Somesing is a music singing content platform based on the Klaytn blockchain $KLAY, aiming to connect music lovers through their "Singverse" on the platform.

As a Web3 community music service, Somesing allows singers or performers to upload their original or cover songs to the platform by paying a fee, encouraging users to donate tokens to creators in exchange for a certain percentage of native token SSX profit-sharing.

Somesing Official Introduction

It is reported that up to 60% of the token supply will be used to incentivize creators, 20% will belong to the platform, and the rest will be used for copyright fees and community maintenance.

According to Klaytn, created by the South Korean tech company KAKAO in Singapore, the company is also one of the founders of the South Korean cryptocurrency exchange Upbit.

Somesing Hacked for $11.5 Million

A previous announcement from Somesing revealed that in a hacker attack on January 27, the platform's 730 million SSX tokens were stolen, resulting in a loss of up to $11.5 million.

The losses include 504 million SSX tokens that have not been distributed yet and 226 million SSX tokens held by the Somesing Foundation; the former is expected to be released for liquidity by the end of 2025, while the latter is already part of the current circulation.

The statement also mentioned:

Based on the investigation so far, it has been confirmed that the hacker incident is not related to any internal members of the Somesing team, and we suspect that this incident was carried out by professional hackers specializing in cryptocurrency hacking activities.

It added, "Somesing has reported the incident to the South Korean Police Cyber Investigation Unit for investigation and will inform the International Criminal Police Organization."

Domestic and Foreign Exchanges Temporarily Halt SSX Deposits and Withdrawals

To avoid potential drastic price fluctuations, the team also urgently requested domestic and foreign cryptocurrency exchanges that list SSX trading pairs to halt deposits and withdrawals.

Currently, exchanges including Upbit, Bithumb, and Coinone have suspended deposits and withdrawals of the token in the past few days. On the other hand, exchanges like HTX and Gate.io, which also have SSX trading pairs, have not released any related statements.

The team expressed that they are working closely with the Klaytn Foundation to track on-chain records to identify the flow of funds and attackers, stating that they will freeze their assets and take legal action.

PeckShield: Hackers Made Over $2 Billion in 2023

Cybersecurity team PeckShield summarized the 2023 hacking incident statistics this morning, stating that there were over 600 significant hacking attacks in the cryptocurrency field last year, resulting in approximately $2.61 billion in losses, with $675 million recovered, a 22.78% decrease compared to 2022.

By classification, losses due to hacking attacks or vulnerabilities amounted to around $1.51 billion excluding the Multichain incident, while losses due to fraud were $1.1 billion.

Notably, DeFi protocols are still more vulnerable to attacks compared to CeFi, accounting for up to 67% of the attack incidents.

Returning to 2024, the total amount of losses from hacking incidents in the first month of this year has already exceeded $100 million, marking significant losses.

2024 is turbulent! Liquidity management protocol Gamma hacked for 4 million pounds, with hackers already making nearly 100 million this year.