The South Korean blockchain-based social karaoke platform Somesing was recently compromised, resulting in the theft of 730 million Somesing (SSX) tokens, valued at approximately $11.58 million. The breach affected both undistributed tokens slated for future release and tokens held by the Somesing Foundation.
Impact of the Security Breach
The aftermath of the hack saw a significant drop in the value of SSX tokens, with prices falling over 10%. Somesing has ruled out internal involvement, attributing the hack to professional cybercriminals. The incident has been reported to the National Police Agency, and Somesing is collaborating with the Klaytn Foundation and Uppsala Security to track down the perpetrators.
In response to the security breach, major South Korean cryptocurrency exchanges, including Upbit, Bithumb, and Coinone, have halted SSX transactions. They have also cautioned users about potential price fluctuations. However, other prominent exchanges listing SSX have not yet taken similar measures.
The hack at Somesing highlights ongoing cybersecurity challenges within the cryptocurrency industry. Despite a significant reduction in the total volume of crypto hacks in 2023 compared to the previous year, the recent $81.5 million loss in the Klaytn-linked Orbit Bridge hack underscores the severity of such security incidents.
Somesing operates on the Klaytn Blockchain, rewarding users with tokens for uploading karaoke recordings. These tokens are donated by other users who appreciate the performances, with a distribution model that benefits the singers, the platform, and the broader community.