2gether, a crypto exchange and trading platform, has provided an update to users on its reimbursement efforts following a hack that happened last year.
In a letter sent on Monday, company chief executive Ramón Ferraz Estrada explained that while they would be able to make some refunds, not all customers can get their money yet.
Hackers halt 2gether’s Progress
2gether suffered a devastating hack in August. At the time, Estrada said in a Twitter thread that an unknown group of hackers had targeted them and successfully stolen 1.183 million Euros ($1.39 million) from their investment accounts. However, while the attackers had gotten into the firm’s user passwords and investment accounts, wallets and Euro accounts were mostly untouched.
The stolen fund represented about 27 percent of 2gether’s entire holdings at the time.
Estrada assured users that 2gether would compensate all victims of the hack. To begin, the company offered customers its native 2GT tokens at 2 cents each. In addition, 2gether committed to raising funds to finance the reimbursement.
The Way Forward
Sharing updates in the letter, Estrada claimed that the firm had raised €1.2 million (US$1.5 million) to improve its risk management and security infrastructure. Some of the funds had also gone to reimbursement efforts. Sadly, due to the recent drop in cryptocurrency prices, the firm won’t be able to reimburse all affected customers.
Currently, 2gether will be able to reimburse 91 percent of its users fully. The remaining 9 percent can choose to accept 99 percent of the non-converted stolen funds in the Euro value they held when the cyberattack occurred. On the other hand, they could also choose to wait until the company raises enough money to pay them back.
“During the past few days, we have considered many options, reaching the conclusion that this is the one solution that maximizes the expected return of all the affected users, in a context of limited resources and knowing that time is a valuable variable,” the company said, thanking customers for their patience.
Crypto thefts have increased in recent times in Europe. UK-based exchange Cashaa also reported a breach that saw it lose over 336 Bitcoins to thieves.
— Cashaa (@yourCashaa) July 11, 2020
The company suspects the hackers used a piece of malware to facilitate exchange transfers and withdrawals. The malware informs the hacker when an employee logs into the account, so they can make transfers. The Cashaa team reported the breach to the cybercrime unit of the Delhi police department. It also collaborated with local bitcoin exchanges in India to monitor and freeze the funds.