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730 Million Tokens Disappear after Multi-Million Dollar Hack

Two days ago, there was a hack on Somesing, the South Korean blockchain platform, and 730 million tokens were stolen as part of a $11.58 million hack.

The Somesing platform issued a statement about the incursion and said that the majority of the stolen tokens (504 million) were actually uncirculated and had not been issued yet. They were set to be released next year. The remaining 226 million tokens were SSX tokens that were in circulation.

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This has hurt their circulation plans for the platform and called their security into question. It will likely make it difficult for them to assure their token holders and potential clients that their SSX tokens will be secure in the future. A hack of this magnitude will also affect the value of the tokens and could bring down the price of the tokens already in account holders’ digital wallets. The hack has resulted in 489 million SSX tokens going into circulation ahead of time, creating an over-circulation crisis.

The report from Somesing said that no one associated with the platform was responsible for the hack, and the strong suspicion is that professional hackers pulled off the theft. Police have been tied and are now investigating.

What to Know about Somesing

Somesing is a karaoke based digital token platform, which rewards karaoke performers with tokens for their efforts. As users upload karaoke performances to the platform, they are paid out in Somesing tokens. The singers get 60% of the proceeds for donated tokens, and the remaining 20% goes to Somesing.

Over the last seven days, Somesing prices have fallen 24%, and there is $3.61B worth of SSX in circulation. This attack does not just hurt Somesing, but it adds to the fear that cryptocurrency is not safe and can be easily hacked. While news reports like these are rare, they happen frequently enough to worry some crypto investors who are hesitant to commit to this digital currency.

 

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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