Throughout May 9-12th, the Hong Kong-based exchange Gatecoin’s hot wallet system was compromised. In an official statement, the company confirmed forum rumours of the site being hacked. The exchange estimates they lost a total of 185,000 ETH and 250 BTC the equivalent of roughly $2 million USD.
Gatecoin says it has started an initial forensic investigation with a cyber security firm called Tehtri Security. Throughout the mysterious event, the team has found a breach in the system and a loss of about 15% of the exchange’s crypto-assets. On May 13th, the company had noticed “suspicious” activity and immediately shut the server down. Gatecoin says on May 9th they had suffered from some “disruption of service” and believe the two events may be connected. The Hong Kong exchange confirm that most of the assets held within the institution are kept in cold storage. However, the attacker managed to bypass transfers taking place and reroute them. The company explains in the official statement: