Crypto exchange GDAC hacked with losses of $14 million
South Korean cryptocurrency exchange GDAC was hacked for around $14 million worth of different tokens, GDAC CEO Han Seunghwan said on Monday.
The attack has forced GDAC to suspend all deposits and withdrawals while the exchange performs emergency server maintenance in response to the breach. In a statement, the relatively small platform revealed that the hack resulted in the theft of approximately 23% of its total assets, including Bitcoin, Ethereum, USDT and WEMIX tokens.
Specifically, around 61 Bitcoin, 351 Ethereum, 10 million WEMIX gaming currency (the exchange’s native token), and 220,000 USDTs were stolen after raiding its hot wallets. As the team learns further about the attack, it will provide more details about the same to its users, the announcement states.
GDAC offers trading in a range of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, as well as a number of other altcoins. In addition to its exchange services, GDAC also offers a number of other digital asset-related services, including an OTC trading desk, a payment gateway, and a crypto lending platform.
Following the security breach, GDAC has taken several measures, including notifying the local police and regulators about the hack. Additionally, the team is working closely with other crypto exchanges and issuers, both domestic and international, to prevent the stolen coins from being laundered and to retrieve them.
Launched in 2018, GDAC is owned by Streami Inc., a fintech company that is focused on developing blockchain technology and digital asset-related services. The exchange has been touting its “Proof of Real Trade” mechanism as designed to prevent market manipulation and ensure that trading volumes are accurate. Under this system, traders are required to verify their transactions through a mobile application, which records and verifies the transaction data.
The unfortunate hack came despite a range of security measures that the exchange employs, including two-factor authentication, cold storage, and multi-signature technology.
Crypto exchanges have been a frequent target of hackers, with dozens of exchanges being hacked over the years. These hacks have resulted in billions of dollars’ worth of cryptocurrency being stolen, and have caused significant damage to the reputation of the affected exchanges.
There are several ways in which exchanges can be hacked, with some of the most common methods including phishing attacks, malware infections, and social engineering. Once a hacker gains access to an exchange’s servers, they can use a range of techniques to steal cryptocurrency from its wallets. These techniques include stealing private keys, exploiting vulnerabilities in the exchange’s code, and using phishing attacks to gain access to user accounts.
