Cryptocurrency Exchange GDAC was Hacked and Lost Almost $14 Million in Crypto

GDAC, a South Korean cryptocurrency exchange, has suffered a security breach resulting in the loss of approximately $13.9 million in various digital assets.

In response to the attack, the platform has suspended all deposits and withdrawals while conducting emergency server maintenance.

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On April 10th, GDAC issued a statement revealing that an attacker gained access to some of the crypto exchange's hot wallets on the morning of April 9th.

According to the announcement, at 7 am Korean Standard Time, the hacker began moving the stolen crypto assets, which included around 61 Bitcoin (BTC), 350.5 Ether (ETH), 10 million WEMIX gaming tokens, and $220,000 in Tether (USDT).

At April 10th market rates, the total value of the stolen assets amounts to approximately $13.9 million.

The announcement highlighted that the stolen funds account for "approximately 23% of Gdac’s current total custodial assets."

GDAC has informed the police, Korea Internet & Security Agency (KISA), and the Financial Intelligence Unit (FIU) about the attack. Additionally, the exchange has requested other platforms not to process deposits from the attacker's address.

GDAC CEO Han Seunghwan admitted that the timeline for resuming withdrawals remains uncertain, stating:

We ask for your understanding that it is difficult to confirm the resumption point of deposit and withdrawal as the investigation is currently underway.

Crypto hacks targeting centralized exchanges continue to plague the industry. Most recently, lending protocol Sentiment lost over 500,000 USD Coin (USDC). On the other hand, at the end of March, the crypto project SafeMoon lost $8.9 million in crypto.

These hacks serve as a reminder for crypto exchanges and other crypto-related firms to prioritize security and for users to exercise caution when entrusting their assets to such platforms.