South Korean Exchange Gdac loses $13M in a hack

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Key Takeaways:

  • On April 9, a hot wallet attack at the GDAC cryptocurrency platform in South Korea cost the company approximately $13 million.
  • The exchange has requested that other platforms prevent users from depositing to the account from which the stolen money was withdrawn.
  • The funds stolen represented about 23% of the exchange’s cryptocurrency assets. 

A security compromise at the South Korean cryptocurrency exchange GDAC resulted in the loss of about $13 million in digital assets from its hot wallet, according to the firm’s announcement

A third-party wallet received unauthorised transfers of 10 million Wemix tokens ($10.7 million), 60.80 bitcoin ($1.7 million), 350 ether ($647,000) and 220,000 USDT stablecoin, according to a GDAC release. According to GDAC, the stolen assets made up about 23% of the platform’s entire worth of customer assets.

According to the WEMIX team, they are “closely monitoring the situation.” WEMIX urged readers to consult the official notifications released by GDAC for additional details and updates.

The exchange’s hot wallet was the focus of the attack, which happened around April 9. The exchange has momentarily stopped offering deposits and withdrawals as a result of this event, and it also announced that it would be performing urgent server maintenance.

The Seoul-based exchange notified the police and the Korea Internet and Security Agency following the attack. The incident has also been reported to KISA, the Korea Internet & Security Agency.  

 Additionally, it alerted the Financial Intelligence Unit, a government body in charge of stopping the financing of terrorism and money laundering. In order to stop deposits from a wallet address holding the stolen funds, the exchange also asked for a cyber investigation and assistance from other exchanges.

With the industry’s rising demand, the frequency of hacking events has surged in the cryptocurrency market. Due to the daily trading of billions of dollars, hackers are enticed to look for weaknesses and carry out exploits, which leads to the loss of user assets. 

After the harm that the global cryptocurrency community had to endure as a result of Terraform Labs’  fiasco, South Korean authorities have taken proactive measures to protect the digital asset industry. Just a week earlier, huge Terraform assets worth $160 million were seized by South Korean prosecutors.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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