Somesing, South Korea’s Crypto Karaoke Hub, Faces $11.5 Million Cyber Heist

• Swift Investigation and Cooperation: Somesing collaborates with law enforcement and blockchain entities to investigate the hack and trace the hackers.
• Exchanges Respond: Major South Korean crypto exchanges suspend SSX services temporarily, cautioning users about potential price volatility.

In a recent security breach, South Korea’s blockchain-based social karaoke platform, Somesing, lost a staggering $11.58 million worth of its native token, SSX. The company confirmed the hack, revealing that 730 million SSX tokens were compromised during the exploit on Saturday. Somesing, currently cooperating with local law enforcement, aims to involve Interpol in its efforts to track down the cybercriminals behind the attack.

Investigation and Cooperation Initiatives Unveiled

Somesing has taken swift action, reporting the incident to the National Police Agency for a thorough investigation. The platform, in collaboration with the Klaytn Foundation and Uppsala Security (an Interpol partner firm), is actively tracing the hackers. Assuring users that the hack is unrelated to any Somesing team member, the company suspects the involvement of professional hackers with expertise in virtual asset breaches.

Immediate Response from Crypto Exchanges

Following Somesing’s request, major South Korean cryptocurrency exchanges, including Upbit, Bithumb, and Coinone, have temporarily suspended deposit and withdrawal services for SSX. Users are cautioned about potential price volatility resulting from the security breach. However, HTX and Gate.io, where SSX is also listed, have not issued similar warnings.

Somesing Freezing Assets and Legal Action on the Horizon

Somesing has outlined plans to freeze the compromised assets and is determined to pursue legal action against the perpetrators once identified. The hacked tokens include 504 million undistributed SSX tokens, scheduled for circulation by 2025, and 226 million SSX from Somesing’s foundation, already in circulation.

Karaoke Platform’s Blockchain Incentives

Running on the Klaytn blockchain, Somesing operates on a unique model where users are incentivized to upload karaoke recordings by receiving tokens as rewards. These tokens are contributed by other users who support their preferred karaoke performers. Singers receive 60% of the donated tokens, with 20% allocated to Somesing and the remaining portion designated for copyright fees and community maintenance.

Continued Cybersecurity Challenges in the Crypto Space

This breach adds to the growing list of cybersecurity concerns within the cryptocurrency industry. Despite the recent $81.5 million hack on Klaytn-linked protocol Orbit Bridge, the total volume of crypto hacks in 2023 witnessed a significant decrease of over 50% compared to the previous year.