This South Korean crypto exchange loses $13 million due to hack

South Korea-based crypto exchange GDAC reported on Monday that it suffered a security breach that resulted in the theft of approximately $13 million worth of crypto.

$13 million in BTC and ETH

The stolen funds represent 23% of the total value of client assets on the platform. On Sunday this was sent by the hackers from GDACs hot wallet to an unidentified wallet. Since then, the exchange has suspended all deposits and withdrawals while authorities investigate the matter.

The hackers’ total loot consists of 60.80 BTC ($1.7 million), 350 ETH ($647 thousand), 10 million Wemix tokens ($10.7 million) and 220,000 USDT stablecoins.

In response to the breach, GDAC immediately suspended its wallet systems, including deposits and withdrawals, and shut down related servers to limit further losses. The central has the local police and the Korea Internet & Security Agency (KISA) has been notified of the incident and is currently cooperating with the ongoing investigation.

However, the company has not disclosed what security vulnerabilities may have led to the incident.

GDAC has also not provided a timeline for when it will be possible to deposit and withdraw crypto again, citing the need to thoroughly investigate and address the security issues that led to the breach.

As mentioned earlier, the total loot was sent from GDAC’s hot wallet. Hot wallets are, unlike cold wallets connected to the internet. Hot wallets allow fast deposits and withdrawals, but are more vulnerable to hacks. Because cold wallets are separate from the internet, they offer more security against cyber attacks. Centralized crypto exchanges usually use a combination of hot and cold wallets to manage customer funds.

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Bug on SushiSwap

Yesterday you could read in the altcoin news that the decentralized exchange (DEX) SushiSwap was hit by a bug. Due to an error in the code of a smart contract, 2.7 million euros in crypto was lost. Users are urged to restrict their wallet access to the affected smart contract revoke and multiple parties are working together to retrieve the stolen crypto.

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