The Block report that Somesing, a blockchain-based karaoke platform in South Korea, was attacked and lost over 700 million native tokens, equivalent to approximately $11.5 million, on Saturday. The team stated that the incident was unrelated to internal members and has reported it to Korean authorities and the police.
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What is Somesing?
Somesing loses $11.5 million
Domestic and foreign exchanges suspend SSX deposits and withdrawals
PeckShield: Hackers gained over $2 billion in 2023
Somesing is a music singing content platform based on the Klaytn blockchain ($KLAY), aiming to connect users who love music through their “Singverse” on the platform.
As a Web3 community music service, Somesing allows singers or performers to pay fees and upload their own original or cover songs to the platform. It encourages users to donate tokens to creators and gives them a certain percentage of native tokens, SSX, as a reward.
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Official Introduction of Somesing
It is reported that up to 60% of the token supply will be used to incentivize creators, 20% will be owned by the platform, and the rest will be used for copyright fees and community maintenance.
As understood,
Klaytn
was created by the South Korean technology company KAKAO in Singapore, which is also one of the founders of the South Korean cryptocurrency exchange Upbit.
Previous announcements from Somesing indicated that in a hacker attack on January 27, 730 million SSX tokens were stolen, resulting in a loss of up to $11.5 million.
Specifically, the loss includes 504 million undistributed SSX tokens 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 stated:
Based on the investigation so far, it has been confirmed that the hacker incident is unrelated to any internal members of the SOMESING team. We speculate that this incident was carried out by professional hackers specializing in cryptocurrency hacking.
It also added, “SOMESING has reported the case to the Cyber Investigation Unit of the Korean Police Agency and requested an investigation into the incident, and will report to the International Criminal Police Organization.”
Meanwhile, to avoid potential drastic price fluctuations, the team urgently requested domestic and foreign cryptocurrency exchanges with SSX-related trading pairs to suspend 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 with SSX trading pairs, HTX, and Gate.io, have not released any related announcements.
The team also stated that they are working closely with the
Klaytn Foundation
to track the records on the blockchain to identify the destination of the funds and the attackers. They claim to freeze their assets and take legal action.
Cybersecurity team PeckShield also summarized the statistics of hacking incidents in 2023, stating that there were over 600 major hacking attacks in the cryptocurrency field last year, resulting in approximately $2.61 billion in losses, of which $675 million has been recovered, a 22.78% decrease compared to 2022.
Categorized by reasons, losses caused by hacker attacks or vulnerabilities amounted to approximately $1.51 billion (excluding the Multichain incident), while losses due to fraud amounted to $1.1 billion.
It is worth mentioning that DeFi protocols are still more likely to be targeted compared to CeFi, accounting for up to 67% of the attack incidents.
Looking back at 2024, the total amount of losses from hacking incidents in the first month has already exceeded $100 million, indicating significant losses.
(
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)
PeckShield
Somesing
PaiShield
Fraud
South Korea
Hackers
Further Reading
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