Hong Kong based Bitcoin and cryptocurrency exchange Gatecoin Ltd. has revealed that it was hacked last week with the loss of some 15 percent of total crypto-asset deposits they held.
Founder and Chief Executive Officer Aurélien Menant explained in a notice on the Gatecoin main page that upon discovering the breach May 13, they immediately suspended all services.
“On Friday night HKT, May 13, we detected some suspicious transactions and immediately suspended our services to investigate, and to prevent any more unauthorized access to the ETH and BTC hot wallets.”
“We have previously communicated the fact that most clients’ crypto-asset funds are stored in multi-signature cold wallets. However, the malicious external party involved in this breach, managed to alter our system so that ETH and BTC deposit transfers by-passed the multi-sig cold storage and went directly to the hot wallet during the breach period. This means that losses of ETH funds exceed the 5% limit that we imposed on our hot wallets.”
“In total, the hot wallet breach resulted in the loss of ETH 185,000 and BTC 250, which is equivalent to USD 2 million. This represents 15% of total crypto-asset deposits held by Gatecoin.”
Menant addressed customers concerned about