In a significant cybersecurity incident, Somesing, a blockchain-powered social karaoke platform in South Korea, has faced a severe breach. The platform reported a loss of approximately 730 million SSX tokens, valued at around $11.58 million. This hacking event, which occurred last Saturday, marks a worrying trend in the digital asset space.
The stolen tokens comprise two categories: 504 million were yet to be circulated, planned for release by the end of 2025, and 226 million were already in circulation, held by the Somesing foundation. The platform has clarified that the hack was executed by external parties, dismissing any involvement of its team members.
In response to this breach, Somesing has taken proactive measures. They have reported the incident to the National Police Agency and are coordinating with Interpol for a thorough investigation. Additionally, Somesing is working with blockchain experts from the Klaytn Foundation and Uppsala Security, an Interpol partner, to track down the perpetrators. They plan to freeze the hacked assets and pursue legal action once the hacker is identified.
As a precautionary measure, leading South Korean cryptocurrency exchanges, including Upbit, Bithumb, and Coinone, have temporarily suspended SSX token transactions. This move aims to mitigate the risk of exacerbated price fluctuations following the security breach. Other exchanges where SSX is listed, like HTX and Gate.io, have not issued similar warnings yet.
Somesing operates on the Klaytn blockchain and offers a unique model where users earn tokens for uploading karaoke recordings. These tokens are donations from other users, with a distribution model that benefits both the singers and the platform.
The recent hack is a reminder of the persistent cybersecurity risks in the cryptocurrency sector. Despite a decrease in the total volume of crypto hacks in 2023, incidents like the $81.5 million Orbit Bridge hack earlier this month highlight the ongoing challenges in ensuring digital asset security.