According to their release, Somesing, a blockchain-based social karaoke platform in South Korea, experienced an exploit on Saturday and lost 730 million of its native token, SSX, which is equivalent to $11.58 million.
The notice stated that 226 million SSX that were held by the Somesing foundation and were already in circulation as well as 504 million undistributed SSX tokens that were scheduled for circulation by the end of 2025 were among the compromised amounts.
Somesing stated, “It has been confirmed that the hacking incident is unrelated to any member of the SOMESING team, and considering the methods, it is assumed to have been conducted by the professional hacker(s) specializing in hacking virtual assets.”
The platform stated it will notify Interpol and has submitted the hacking incident to the National Police Agency for investigation. With assistance from Uppsala Security, an Interpol partner company, and Klaytn Foundation, a local blockchain organization, Somesing is also tracking down the perpetrator. Somesing stated that after identifying the offender, it intends to freeze the funds and pursue legal action.
At Somesing’s request, major South Korean cryptocurrency exchanges Upbit, Bithumb, and Coinone stopped accepting deposits and withdrawals of SSX and issued alerts alerting customers to the potential for increased price volatility as a result of the security compromise. Additionally, HTX and Gate.io, where the token is listed, have not published any similar cautions.
Users are rewarded with tokens by Somesing, a blockchain-based platform that plays karaoke songs, for uploading their recordings. Other people who give tokens to their preferred karaoke artists finance these prizes. 60% of the tokens donated go to the singers; 20% go to Somesing, and the remaining 40% are used for community maintenance and copyright costs.
As demonstrated by the $81.5 million hack on the Klaytn-linked protocol Orbit Bridge earlier this month, cybersecurity is still a major problem in the cryptocurrency space. In spite of this event, there were more than 50% fewer cryptocurrency hacks in 2023 than there were in 2022.