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GDAC exchange lost more than $13 million in a cyberattack

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ByMarcel Bich

Apr 14, 2023
Marcel Bich
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The exchange lost almost a quarter of all its assets.

Hackers have stolen $13.9 million worth of cryptocurrency from GDAC, resulting in a loss of 23% of the exchange’s total assets. The cyber attack occurred on April 9, 2023, at around 7 a.m.

The hackers gained access to GDAC’s hot wallet and withdrew 61 Bitcoins, 350.5 Ethereum, 10 million WEMIX, and $220,000 USDT to their own wallets. Immediately after discovering the attack, the South Korean exchange froze all transactions and funds in the affected hot wallet. Representatives of the company representatives did not provide any specific details or reasons for the incident.

The use of hot wallets is popular in the crypto industry because they are connected to the internet and can facilitate fast transactions. However, they are less secure against cyberattacks, which is exactly what happened to GDAC.

Han Seunghwan, CEO of the exchange, notified the Korean police and an investigation is currently ongoing. The exchange also reported the attack to the country’s Internet and Security Agency (KISA) and asked them to send specialists to deal with the aftermath of the incident. In addition, the company reported the incident to the Financial Intelligence Unit (FIU), which investigates financial crimes.

GDAC CEO asks other exchanges for help

The GDAC CEO called on other crypto-asset exchanges to immediately block deposits from the attackers’ wallets. He also requested that users be patient while the investigation is ongoing.

It is currently unclear when the exchange will resume normal operations and allow withdrawals, but this is expected to happen as soon as the causes of the incident are established. According to the statement, the exchange conducts quarterly audits of retention and adequacy of reserves with the help of a third-party accounting firm. The collateral for user deposits exceeded 100%.

This is not the only cryptocurrency exchange hack that happened in April 2023. SushiSwap recently reported that it was hacked, resulting in a loss of $3.3M. Moreover, cyberattacks on centralized exchanges, one of which is GDAC, have become more frequent. For instance, in January 2022, it became known that Crypto.com was hacked, and more than $15 million worth of funds were stolen.

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Marcel Bich

Marcel ‘s passion for the world of cryptocurrencies and his comprehensive knowledge of blockchain technology make him an invaluable asset to our team. He stays updated on the latest trends, regulations, and emerging technologies in the crypto space, ensuring that our audience receives accurate and up-to-date information.