Major Hack Hits South Korean Exchange GDAC, $13.9M Stolen

Major Hack Hits South Korean Exchange GDAC, $13.9M Stolen

The hack took place on April 9, 2023, in which hackers gained control of some of the exchange’s hot wallets.

According to GDAC, stolen cryptocurrencies include 61 Bitcoins, 350.5 Ethers, 10 million of the WEMIX gaming currency, and $220,000 worth of Tethers.

South Korean cryptocurrency exchange and blockchain platform GDAC has fallen victim to a devastating hack, resulting in the theft of approximately $13.9 million worth of various cryptocurrencies.

GDAC CEO Han Seunghwan made the announcement on April 10 2023, revealing that the attack had occurred on the morning of April 9th 2023, when the hacker gained control of some of the exchange’s hot wallets.

The stolen cryptocurrencies include 61 Bitcoin, 350.5 Ether, 10 million of the WEMIX gaming currency, and $220,000 worth of Tether. This amounts to around 23% of GDAC’s total custodial assets, as stated in the announcement. In response to the attack, GDAC has halted all deposits and withdrawals and has initiated emergency server maintenance.

GDAC has taken swift action by reporting the hack to the police, informing the Korea Internet & Security Agency (KISA), and notifying the Financial Intelligence Unit (FIU) of the loss incurred due to the attack. The exchange is also urging other crypto exchanges not to honour any deposits made from the address used by the attacker.

Seunghwan expressed the challenges of confirming the timeline for resuming deposits and withdrawals, citing the ongoing investigation as a reason for the uncertainty.

Unfortunately, this incident is not isolated, as centralized exchange hacks continue to plague the cryptocurrency industry. In January 2022, suffered a hack that resulted in a loss of over $15 million.

In November 2019, the South Korean cryptocurrency exchange UPbit was hacked after which attackers managed to steal $50 million worth of Ether. Nevertheless, the GDAC hack will only harm investors’ trust in online crypto exchanges.

As the cryptocurrency market continues to grow, security remains a critical concern. Exchanges and investors alike must remain vigilant and implement robust measures to safeguard against potential cyber threats. GDAC’s unfortunate experience serves as a reminder of the importance of stringent security protocols in the ever-evolving landscape of cryptocurrencies.

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