Crypto Karaoke Platform Somesing Hacked for $11.5 Million

Jan. 29, 2024
Crypto Karaoke Platform Somesing Hacked for $11.5 Million

Somesing, a blockchain-based social karaoke platform in South Korea, fell victim to a cyberattack on Jan. 27. The platform disclosed a loss of 730 million units of its native token, equivalent to $11.58 million.

The compromised amount included 504 million undistributed SSX tokens, which were planned for circulation by the end of 2025, and 226 million SSX held by the Somesing Foundation, which were already in circulation. The firm confirmed that the hacking incident is not associated with any member of its team.

Somesing sated:

“It has been confirmed that the hacking incident is not related to any member of the SOMESING team, and it is assumed to have been conducted by the professional hacker(s) specializing in hacking virtual assets considering the methods.”

The company reported the incident to the National Police Agency and intends to involve Interpol in the investigation. Somesing is actively working with Uppsala Security, a firm partnered with Interpol and Klaytn Foundation, a local blockchain entity, to track down the attackers. Moreover, the firm plans to freeze the stolen assets and take legal action against the perpetrators once they are identified.

Major South Korean crypto exchanges, including Bithumb, Coinone, and Upbit, have temporarily suspended the withdrawal and deposit of SSX tokens. These platforms have warned customers about potential price volatility resulting from the exploit. However, and HTX, which offer SSX, have not posted such warnings.

Somesing, which runs on the Klaytn blockchain, encourages users to upload their karaoke recordings by offering them tokens as rewards. These SSX tokens come from donations from other users who support their favorite karaoke singers. Singers get 60% of the donated tokens, while 20% goes to the platform. Somesing manages copyright fees and community maintenance with the remaining 20%.

S. Korean Exchanges Blocked $82M in Romance Scam

South Korean crypto exchanges blocked more than $82 million in transactions related to romance scams last year. Per Seoul Shinmun, the Coinone exchange claimed that catfishing and other romantic scams that involve crypto are “rampant” in South Korea. Coinone said it suspended over $2.6 million worth of trades linked to romance scams.

On Jan. 22, the Financial Supervisory Service (FSS) claimed that there had been a rise in crypto scams on social media sites. The FSS warned the public against romance scams and unsolicited investment-related ‘recommendations and advice.’

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years.