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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