Crypto Exchange 2gether Says It Can't Fully Reimburse 9% of Users After 2020 Hack

After a successful fundraising effort, the company said it can now reimburse most, but not all users.

AccessTimeIconJan 27, 2021 at 1:43 p.m. UTC
Updated May 9, 2023 at 3:15 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Crypto exchange 2gether said it is unable to reimburse all users affected by a hack last year, even after a successful fundraising effort. 

Since the hack, 2gether CEO Ramón Ferraz Estrada said the firm had been working raising €1.2 million (US$1.5 million) to improve the company’s security and risk management, and to replenish the stolen funds. In the end, 2gether managed to hit the regulated limit of €1.5 million, he said. The raise included voluntary conversion of some of the lost funds into shares and tokens.

  • SEC Asking for Ether ETF Filings Update Is 'Somewhat Surprising': Legal Expert
    00:38
    SEC Asking for Ether ETF Filings Update Is 'Somewhat Surprising': Legal Expert
  • MOG Rallies on Anticipation of Spot Ether ETF Approval
    00:56
    MOG Rallies on Anticipation of Spot Ether ETF Approval
  • Ether Jumps on Spot ETF Hopes; Hex Trust Issues Stablecoin on Flare
    01:59
    Ether Jumps on Spot ETF Hopes; Hex Trust Issues Stablecoin on Flare
  • 'Sky Is the Limit' for Bitcoin: Expert
    00:53
    'Sky Is the Limit' for Bitcoin: Expert
  • Addressing customers in a Jan. 25 letter, the CEO said that, due to the recent rise in the value of bitcoin and ether, the company still cannot refund 100% of the stolen assets to 9% of users. However, roughly 5,000 users will receive full refunds of BTC and ETH that was not previously converted.

    For the 9% that would not receive the full amount, 2gether is offering a choice to accept "at most, 99% of the non-converted stolen funds, and at least, the value in euros that was lost when the cyber attack took place." Otherwise, this group can choose to wait till the firm can afford full refunds or seek alternative solutions, Ferraz Estrada said.

    Last July, the exchange suffered a cyber attack that saw €1.2 million ($1.45 million) in crypto assets stolen – 27% of the firm's total holdings at the time.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.