The Hacker Behind $13 Million GDAC Exchange Theft Begins Moving Stolen Funds
A hacker who stole $13 million from the GDAC exchange on April 9, 2023, has recently started transferring the stolen funds. This information was shared through a MistTrack Alert on Twitter on October 11, 2023.
GDAC’s Security Breach and Immediate Response
Earlier this year, on April 9, the South Korean cryptocurrency exchange GDAC experienced a significant security breach. The unauthorized withdrawal of cryptocurrencies worth around $13.9 million prompted GDAC CEO Han Seunghwan to announce an immediate halt to all deposits and withdrawals on the platform. Emergency server maintenance was also initiated. The stolen amount accounted for nearly 23% of GDAC’s total custodial assets. In response, GDAC promptly reported the hack to local authorities, the Korea Internet & Security Agency (KISA), and the Financial Intelligence Unit (FIU).
Movement of Stolen Funds
According to MistTrack Alert, the initial transfer involved approximately 60.8 BTC being moved to an address labeled 1AWcB…mPnAe. Subsequently, address 1AWcB…mPnAe transferred around 36.7 BTC to three different addresses: bc1qk…auztv, bc1q2…nc2ah, and bc1qd…tta9k. Currently, there is approximately 24 BTC remaining in address 1AWcB…mPnAe.
Continued Monitoring by MistTrack and Ongoing Challenges for Exchanges
MistTrack has committed to monitoring the movement of these funds and providing updates to the crypto community. This hack serves as a reminder of the ongoing challenges faced by centralized exchanges in safeguarding digital assets and ensuring the security of user funds. Previous incidents, such as the $15 million theft from Crypto.com in January 2022 and the $663 million drained from FTX during a liquidity crisis, highlight the vulnerabilities that exchanges must address.
Hot Take: Challenges in Securing Crypto Exchanges
The recent movement of stolen funds from the GDAC exchange highlights the persistent challenges faced by crypto exchanges in protecting user assets. Security breaches like these serve as reminders of the need for robust security measures and proactive response protocols. Exchanges must prioritize the safety of their users’ funds and work towards implementing stronger security systems to prevent such incidents. The crypto community must also remain vigilant and stay informed about potential risks associated with centralized exchanges. By fostering a culture of security awareness, the industry can collectively work towards enhancing the overall safety and trustworthiness of cryptocurrency platforms.
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