2gether Struggles to Reimburse Funds From Recent Crypto Hack

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In Brief
  • Spanish crypto trading company 2gether was recently hacked.

  • The firm has lost $1.4 million in funds and is struggling to reimburse customers.

  • It will offer an equivalent value in 2GT tokens.

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European cryptocurrency trading platform 2gether announced that it was hacked, with $1.4 million stolen from the firm’s funds.

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The Spanish cryptocurrency payment platform highlighted that the company is facing an “extremely difficult situation” and is struggling to reimburse stolen funds. Since the hack on July 31, the company has been fighting to preserve the integrity of euro accounts, BTC & ETH wallets, and 2GT accounts.

The crypto stolen in the attack amounts to 26.79% of the positions in user accounts, it stated. The specific harm on BTC accounts represented 47.35%, while the impact on ETH was 11.04%, with other cryptocurrencies unaffected.

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In order to find the funds needed to cover all positions, the company is negotiating with an investment group. “We sadly haven’t been able to reach an agreement,” said the announcement.

“We’ve been trying to share with you the most recent updates with total transparency, but still avoiding giving you fake expectations, as we didn’t have enough funds to cover said positions.”

The firm’s CEO Ramon Ferraz Estrada explained through several tweets that the company is continuously working to re-establish trust and replenish lost faith.

Possible Offerings

2gether offered clients compensation in the form of 2GT, equivalent to the issuance price of five cents. The company said in a recent announcement that clients did not accept the offering. This was due to the potential detrimental effect on the ICO that the company has planned for next year.

The company has come up with a new offer to provide the stolen amount in company shares. It will have the same conditions attached as discussed with investors. If neither option is chosen, clients would have to wait for “the recovery of all stolen funds,” it said.

2gether will also be running an AMA (Ask Me Anything) session to clarify all client questions. It assured users that the app would be back as soon as possible with “all the security measures available.” The company is working with an external team of experts to come up with possible solutions for the lost funds.

“Since last Friday, and while we were looking for a solution for your funds, the technical team has been working on re-establishing the app’s service with all the guarantees that there are no weaknesses, so that you can access your funds and operate freely,”

The company said that it will reopen its app on Wednesday, following testing in the production environment.

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Sujha reports on cryptocurrencies, blockchain developments and markets, operating from the South East Asia timezone. Her work has appeared in CoinDesk, CCN, EconoTimes and Venture Capital Post. She does not currently hold value in any digital currencies. sujhasundar@gmail.com

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