Following a cyberattack that resulted in the theft of approximately $13 million in digital assets, cryptocurrency exchange GDAC has stated that it is temporarily stopping deposits and withdrawals. Over 60 Bitcoin (BTC), 350.5 Ethereum (ETH), 10,000,000 WEMIX, and 220,000 Tether (USDT) were stolen during the hack on April 7. These sums comprised about 23% of the platform’s custodial assets.
In a statement made public, GDAC said that the breach was accomplished by a technique known as a “flash loan assault,” in which the hackers borrowed huge amounts of cryptocurrency quickly, changed the value of specific tokens, and then paid back the loan. Digital assets worth over $200 million were stolen due to the hack.
At the time of writing, GDAC has informed its users that their private information is secure and that the platform’s custodial assets were the only ones impacted by the theft. The exchange is presently collaborating with law enforcement organizations and cybersecurity specialists to investigate the attack and retrieve the stolen assets.
GDAC Issues An Official Statement, Hints Rising Rate Of Attacks
GDAC issued a statement expressing regret and worry that have happened as a result of this occurrence. They went ahead to assure investors of the safety of their assets, and promised to recover the stolen ones in no time.
The hack is the latest in high-profile cyber attacks on cryptocurrency exchanges. Earlier this year, the Japanese exchange Zaif was hacked, stealing over $60 million in digital assets. In 2018, the South Korean exchange Coinrail was also hacked, resulting in the theft of over $40 million in digital assets.
The rise in cyber-attacks on cryptocurrency exchanges has led to calls for increased regulation and security measures. The Cyberattack is the most recent in an array of popular ones against Bitcoin exchanges.
Recall, that a breach on the Japanese exchange Zaif earlier this year led to the theft of more than $60 million in digital assets. Around $40 million in digital assets were stolen in 2018 when the South Korean exchange Coinrail was hacked.
Past Attacks And The Quest For Stronger Cryptocurrency Security
While GDAC moans about the unfortunate incident, cryptocurrency analysts have continued to bring up the case of Euler Finance in March. These were said to be the biggest hacks in cryptocurrency history, with over $200 million worth of digital products stolen. Reports had it that the company had offered to pay the hackers $20 million in exchange for the digital assets, but the request has failed on a deaf ear.
Information from the security agencies investigating the case revealed the identity of the hacker(s) as just “Jacob,” and no other vital information was obtained afterward. On a more positive note, the hackers later returned $100 million in ETH and apologized, only to return the rest of the loot the next day.
There have been requests for more regulation and security measures due to increased cyberattacks on cryptocurrency exchanges. Many exchanges have added two-factor authentication and other security measures to secure users’ funds, but some experts think more could be done to thwart attacks.