The rapidly evolving cryptocurrency and web3 industry always carries fears of exploitation and security breaches, being relatively new to the world. Recently, the South Korean web3 music service platform Somesing experienced a security breach, resulting in the loss of a significant $11.58 million worth of its SSX native tokens.
Security breach in South Korean web3 music platform
Somesing is a South Korean blockchain-based karaoke platform. According to its recent post on Medium, the platform’s 730 million SSX tokens were compromised. However, these 504 million stolen SSX tokens were initially planned for circulation in 2025, and its 225 million SSX tokens were already in circulation.
According to the recent Somesing internal investigation, there is no involvement of any team members, and it is expected that this hack was carried out by professional hackers. Additionally, Somesing reported this hack to the National Police Agency and sought help from Interpol in the investigation.
Klaytn Foundation, a local security firm, has collaborated with Interpol to identify the hackers involved in this incident. The firm plans to freeze the stolen SSX tokens and take legal action once they identify the hackers. The firm in South Korea is also receiving help from reputable cryptocurrency exchanges, which have temporarily suspended the deposit and withdrawal of SSX tokens. These exchanges have also warned their users about the price volatility of SSX tokens. However, HTX and Gateio still haven’t taken any action or issued warnings.
Could North Korea be behind this hack?
Based on previous data and history, analysts speculate that this hack might have been perpetrated by North Korea, the South Korean neighbor. In the cryptocurrency industry, North Korea’s crypto-hacking group is highly active and constantly seeks opportunities or loopholes to exploit.
Following this hack, the Somesing native token SSX has been severely affected. As of the current writing, SSX is trading near $0.014, experiencing over 14% downside momentum due to this incident. Over a longer period, in the last 7 days, SSX has experienced a 24% downside momentum, and in the last 30 days, it has seen a 30% downside momentum.
Despite the significant price drop, the activity of SSX tokens is relatively high compared to other days. Despite warnings from major cryptocurrency exchanges in South Korea, the ‘hours’ volume of SSX tokens has surged by 68%. It is crucial for the industry to come up with new developments that can help prevent such ongoing activities.
