Gatecoin CEO Reveals $2 Million Loss in Hacking Incident

Traderman reports:

On Saturday, Gatecoin CEO Aurélien Menant, released a statement that details the nature of the hack and how the exchange managed to lose 15% of client’s digital currency deposits.

Gatecoin has always kept 95% of all customer funds in multi-signature cold wallets, however, the hacker managed to alter Gatecoin systems in such a way as to divert ETH deposits away from these secure cold wallets.

Aurélien Menant explained:

“However, the malicious external party involved in this breach, managed to alter our system so that ETH 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.”

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