Gatecoin, a Hong Kong-based digital currency startup that has cited segregated client accounts as a way to minimize exposure to risks, suffered a breach and lost 250 BTC and 185,000 ETH, 15% of its crypto asset deposits.
A cybersecurity firm, Tehtri Security, conducted a forensic investigation and confirmed the breach, Gatecoin announced in a statement by CEO Aurélien Menant posted on its website.
The breach took place between Monday, May 9, late night HKT, to Thursday evening HKT, 12 May 2016, the statement noted. The company noticed a disruption of service caused by a server reboot. The company said the breach is linked to this event.
Gatecoin Suspends Services
On Friday HKT, May 13, Gatecoin detected suspicious transactions and immediately suspended its services to investigate.
Most clients’ asset funds are stored in multi-signature, cold wallets. However, the attacker managed to alter the system so that BTC and ETH deposit transfers bypassed the multi-signature cold storage and entered the hot wallet during the breach.