South Korean crypto platform GDAC has fallen victim to a hot wallet hack on April 9th, losing at least $13 million in Bitcoin (BTC), Ethereum (ETH), WEMIX, and USDT.
GDAC’s monitoring system detected the hack, and the exchange’s monitoring team suspended deposits and withdrawals and alerted authorities.
The hacker stole 60.81 BTC (approximately $1.7 million), 350.50 ETH ($649,000), 10,000,000 WEMIX ($11.4 million), and 220,000 USDT ($220,000), which makes up almost 25% of GDAC’s assets under custody.
After the hack, GDAC contacted the police and reported the incident to the Korea Internet and Security Agency. It also notified the Financial Intelligence Unit, the government agency responsible for preventing money laundering and terrorist financing.
In addition, GDAC has requested other exchanges to prevent deposits from a wallet address holding the stolen funds.
The incident highlights the need for robust security measures in the cryptocurrency space. Hong Kong’s upcoming crypto legislation proposes allowing crypto custodians to hold up to 2% of customer assets in hot wallets. Platforms must also hold insurance to cover custody risks.
Meanwhile, security firm BlockSec has recovered 100 ETH from a DeFi hack that exploited a bug in SushiSwap’s Router2Processor2 smart contract on April 9th. Initially, security firm PeckShield reported that the hack cost one user at least 1,800 ETH ($3.3 million).
