Gatecoin, The Latest Victim Of A $2 Million Dollar Worth Cyber Crime

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Gatecoin – “Hot wallets”, holding Bitcoins as well as Ethere gets hacked. The Hong Kong based firm Bitcoin, admitted to a breach in its security between the 9th of May and the 12th of May. The hackers seem to have gotten away with, almost as much as $2 million in the form of digital currency. Two-hundred and fifty Bitcoins, along with 185,000 Ethere seem to have been stolen.

Can one avoid this or is it something that’s just inevitable? Well, there are certain things one can do the reduce the probability of this happening. It seems that a hot wallet is not a very secure place to save one’s crypto-currency deposits. Unlike with “cold storage”, they are much more accessible, making it easier to hack from any device. With private keys required to transfer value, cold storage proves to be a much safer option.

The culprits of this attack are still a mystery. With the Tehtri Security behind this investigation, Gatecoin are infact getting impatient as they look to improve the security of their other crypto-assets.

Gatecoin seems to have adopted a decent enough strategy to deal with this issue. Efforts are going to be undertaken to hire more members for the Gatecoin’s security team, in order to improve its security structure. Looking after it’s clients as well is Gatecoin, with the aim of raising $4 to $5 million from investments, to refund those clients who lost their Bitcoins/Ethere funds.

Trying to get their clients really involved, Gatecoin have offered 25% of the money recovered, along with free trading on the exchange as bounty for the return of the stolen cyber currency.

When you look at it, such a robbery has happened before and in all probability, it will happen again. Thieves have targeted such exchanges for a reason. As large sums of currencies are frequently handled by them, they come off as fairly attractive targets. Not only are cryptocurrency exchanges under attack, but cyber crime seems to have gotten to three banks as well in recent history.

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All posts published by the Bitcoin Advice Editorial Team combined. Primary objective is to provide quality content to our readers.

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