Gatecoin to Reopen Exchange After Raising $500K

The Hong Kong-based exchange Gatecoin announced the company has raised $500,000 in order to reboot their trading platform in August.

Back in May, Gatecoin suffered from a major breach resulting in 250 BTC and 185,000 ETH stolen. Those assets represented 15 percent of the company’s deposits.

With the funds raised by a listed Japanese investment company, the CEO of Gatecoin, Aurélien Menant wrote out a blueprint on how to rebuild the company. Menant explains the funds will be used to enhance their security infrastructure and upgrade their team. This resulted in the termination of the CTO. The new CTO now has vast knowledge of security and securing financial systems.

Menant continues:

Once onboard, the new CTO and additional engineers will be tasked with designing, monitoring and maintaining a new security infrastructure to ensure that clients’ ETH withdrawals and later, the trading platform, are fully protected from all manner of cyberattacks and breaches.

The remaining funds will be used to fully reimburse all users who lost ETH during the breach. As of right now, Gatecoin was able to recover 5,000 ETH with a little help from the US-based exchange Poloniex.

“We are still negotiating with several clients on the terms and procedures of USD multi-million block trades, from which we would be able to reimburse a part of the stolen ETH funds from our own pocket,” Menant writes.

The company will announce when their clients will be able to withdraw their stolen funds. With their new CTO and an equity investment from a listed Japanese investment group, Menant hopes that will be enough to satisfy future investors to contribute to their recovery. Names of both the CTO and Japanese investment group have not been released to the public.

Gatecoin is working tirelessly with the Cyber Security and Technology Crime Bureau of the Hong Kong Police Force to analyze the breach. However, since this is an ongoing investigation, Gatecoin cannot provide any new details. A report is likely to be released in another several months.