Gatecoin Lost $2m Worth of Bitcoin and Ethereum In Hot Wallet Cyber Hack

[alyssa85]

http://www.financemagnates.com/cryptocurrency/exchange/gatecoin-lost-2m-worth-bitcoin-ethereum-hot-wallet-cyber-hack/

The latest victim to suffer from cyber crime is the Hong Kong regulated financial institution for blockchain assets, Gatecoin. On Saturday, the founder and CEO of the firm Aurelien Menant published a statement to investors confirming a breach of Gatecoin’s system resulting in a loss of client deposits.

Menant writes: “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.”

[mindrust]

Get ready for the big dump. Cheap coins are on its way.

I wish i knew which exchange will the hackers use to dump their coins. If this happened is Hong-Kong, then it is most likely will be Huobi. (just guessing)

[crazyivan]

This is old news, the dump should ve happened already.

[mobnepal]

This is old news, the dump should ve happened already.

It happen on may 13 which is not long ago and to sell all those ethereum it needs so much buy force which is unlikely to happen currently. $2m is too much to get bought in any exchanger, so i think we will see dump in atleast ethereum will be buying some of those.

But feel sorry for all who lost their deposit, hope they will get back as gatecoin team is saying they will raise more fund to repay their investors.

[alyssa85]

Get ready for the big dump. Cheap coins are on its way.

I wish i knew which exchange will the hackers use to dump their coins. If this happened is Hong-Kong, then it is most likely will be Huobi. (just guessing)

They will have contacted all the other exchanges with details of which addresses are being used. Most exchanges are keen to co-operate and freeze stolen coins, because they might need similar help in the future.

If they can co-operate to the extent where thieves struggle to sell the coins they stole, perhaps they'll stop targeting exchanges...

[BitcoinSupremo]

No dump price yet, but not really interested in Ether , by the way , is this a new inside job or this Gatecoin exchange get hacked for real, I think chances are pretty much high this is just another inside job which doesn't surprise me at all anymore, once an exchange becomes big and have quite some funds I expect sooner or later an inside job and  a rich man behind this . Exchanges are becoming a joke.