Hack Sees South Korean Crypto Platform Losing More Than $13 Million

South Korean crypto platform GDAC lost at least $13 million in Bitcoin (BTC), Ethereum (ETH), WEMIX, and USDT through a hot wallet hack on April 9.

After the exchange’s monitoring system discovered the hack, the monitoring team at GDAC suspended deposits and withdrawals and notified the authorities.

GDAC has taken approximately 25% of the assets under custody

The hacker stole 60.81 BTC (about $1.7 million), 350.50 ETH ($649,000), 10,000,000 WEMIX ($11.4 million), and $220,000 ($220,000 USD). Stolen assets make up 23% of GDAC’s assets under custody.

After the hack, the Seoul-based exchange contacted the police and reported the incident to the Korea Internet and Security Agency. It also informed the Financial Intelligence Unit, which is the government agency responsible for preventing money laundering and terrorist financing.

She also has Requested Other exchanges to prevent deposits from the wallet address that holds the stolen funds.

Hong Kong’s upcoming crypto law proposes to allow crypto custodians to hold up to 2% of customers’ assets in hot wallets. Pallets must also have insurance to cover custodial risks.

Security firm BlockSec has recovered 100 ETH from a DeFi hack that exploited a bug in SushiSwap’s Router2Processor2 smart contract on April 9. Security firm PeckShield initially reported that the hack cost at least one user 1,800 ETH ($3.3 million).

South Korean authorities frustrated in efforts to extradite Do Kwon

South Korean prosecutors recently seized assets belonging to Terraform Labs founder Daniel Shin.

Authorities blocked Shin’s apartments in Seoul and landed them in Hwaseong and Gapyeong in South Chungcheong Province. They also confiscated cars belonging to Shin and others. Prosecutors estimate that proceeds of crimes allegedly committed by Terraform Labs co-founder Shin, Do Kwon, and others totaled more than $300 million.

Korean prosecutors allege that Kwon, Shin, and other Terraform Labs employees extorted money from investors in TerraUSD and LUNA.

Authorities in the United States and South Korea are seeking Kwon’s extradition, which Kwon’s lawyer said will not happen anytime soon.

TerraUSD and LUNA both lost most of their value after heavy transactions over the weekend of May 10, 2022.

Kwon, who is currently in a prison in Montenegro after he was caught trying to flee with a fake passport, converted $69 million in stolen proceeds into Bitcoin.

The authorities asked Binance to stop Kwon from liquidating the proceeds. Unlike Shin, Kwon allegedly does not own any property in South Korea.

For a recent Be (In) Crypto Bitcoin (BTC) analysis, click here.


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