South Korean cryptocurrency exchange GDAC was subject to a hack of approximately $14 million worth of cryptocurrency. The exchange announced on April 9th that control of some hot wallets was compromised and the attacker transferred the cryptocurrencies to wallets under their control in the early morning hours.
As a result of the attack, 61 Bitcoin (BTC), 350.5 Ether (ETH), 10 million WEMIX gaming currency, and $220,000 worth of Tether (USDT) were stolen.
GDAC CEO Han Seunghwan stated that all deposit and withdrawal transactions have been suspended and emergency server maintenance has been performed after the attack. The exchange also requested other cryptocurrency exchanges not to accept deposits from the address used by the attacker. The attack was reported to the Korean Internet Security Agency (KISA) and the Financial Intelligence Unit.
The GDAC hack has been recorded as the first major centralized cryptocurrency exchange hack of 2023.
Han Seunghwan, the GDAC CEO, mentioned that the investigation is ongoing and it is currently difficult to say when deposit and withdrawal transactions will resume. However, the exchange has assured its customers that any losses will be compensated.
Recent cryptocurrency exchange hacks have increased interest in decentralized exchanges. Decentralized exchanges allow users to store their cryptocurrency in their own wallets instead of on the exchange, thus providing protection against hack attacks. As a result, interest in decentralized exchanges is growing rapidly among cryptocurrency users, not only for security but also for control and privacy reasons.