In South Korea, a Blockchain-based social karaoke platform called Somesing was hacked last weekend. The platform announced that 730 million Somesing (SSX) tokens worth $11.58 million were stolen.
Altcoin’s Price Plummets After Hack Attack
Accordingly, the stolen tokens were part of the 504 million undistributed SSX tokens planned to be released into circulation by the end of 2025, and included 226 million SSX tokens held by the Somesing Foundation, which are already part of the current circulating supply. Following the attack, the price of SSX fell by more than 10%, from $0.01851 to $0.015.
Somesing confirmed that “the hack attack has no connection with any member of the Somesing team and is presumed to have been carried out by professional hacker(s) specialized in the theft of virtual assets.” The platform reported the hack to the National Police Agency for investigation and announced plans to notify Interpol. Somesing also added that it is tracking the attacker with the help of the local Blockchain organization Klaytn Foundation and Interpol’s partner company Uppsala Security. After identifying the perpetrator, Somesing intends to freeze the assets and initiate legal proceedings.
Leading South Korean crypto exchanges such as Upbit, Bithumb, and Coinone have suspended deposit and withdrawal services for SSX at Somesing’s request and warned users about increased price volatility due to the security breach. On the other hand, other leading centralized crypto exchanges that list SSX, such as HTX and Gate.io, have not taken any action.
Cybersecurity remains a critical concern in the crypto sector, as seen in the recent hack of the Klaytn-linked protocol Orbit Bridge, which resulted in a loss of $81.5 million earlier this month. Despite this incident, the total volume of crypto hacks in 2023 has dropped by over 50% compared to 2022.
What is Somesing and How Does It Work?
Operating on the Klaytn Blockchain, Somesing incentivizes users to upload karaoke recordings by rewarding them with tokens. These rewards are financed by other users who donate tokens to their favorite karaoke singers.
Singers receive 60% of the donated tokens, 20% goes to Somesing, and the remainder is allocated for copyright fees and the community.
