Hackers Steal $2 Million From Bitcoin Exchange In Hong Kong, Bounty Offered To Recover Funds
By Robert Olsen
For cryptocurrency enthusiasts seeking mainstream adoption, events like this are so unhelpful.
Hackers appear to have made off with the equivalent of $2 million in digital currencies from Gatecoin, according to a notice posted on the exchange’s website. The Hong Kong-based firm admitted a security breach occurred between May 9 and 12 that allowed unauthorized access to its “hot wallets” holding both Bitcoins and Ethere (a Bitcoin rival). In total, the hackers were able to steal 250 Bitcoins and 185,000 Ethers, representing 15% of Gatecoin’s crypto-asset deposits.
Cryptocurrencies are said to be more vulnerable when held in a hot wallet because they’re accessible on the web from any connected device. When they’re in “cold storage,” on the other hand, the private keys needed to transfer their value are held in a secure, offline device.
The details of how the hackers were able to pull off such a heist still have yet to be disclosed. Tehtri Security, a French cybersecurity firm, is said to be conducting a forensic investigation of the breach.
In a Reddit post from Friday, Gatecoin’s CEO Aurélien Menant said the investigation was taking longer than expected as they continue to focus on improving security for its other crypto-assets.
The post also stated that Gatecoin was trying to raise investment in order to reimburse all clients’ Bitcoin and Ether funds. The company’s target is to raise between $4 and $5 million to cover for the losses and to strengthen Gatecoin’s tech team with the aim of relaunching the exchange with a new security infrastructure.
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