Gatecoin Secures Japanese Investment, Will Relaunch on August

Eduardo Gómez | July 5, 2016 | 5:59 pm
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Gatecoin Secures Japanese Investment, Will Relaunch on August

Eduardo Gómez | July 5, 2016 | 5:59 pm

Gatecoin, the online trading platform for cryptocurrency and blockchain assets, has released a new statement regarding their efforts to secure funding.

The cryptocurrency exchange suffered from a major hacking incident. The heist resulted in the loss of more than 250 Bitcoins and the whooping figure of 185,000 Ethers. Although most of the funds were securely stored in cold wallets, the hackers found a way to infiltrate the exchange’s operations.

The company revealed that it has successfully closed an equity investment of $500,000 from a Japanese investment group. Noting that this money is not going towards the reimbursement the affected clients the company said:

This first investment will be primarily used to bolster the security infrastructure of the exchange, which is currently planned to relaunch in early August. As part of the security upgrade, a new CTO, with an extensive background in systems security, and additional engineering talent with experience in secure financial systems will join the Gatecoin team.

Gatecoin’s fundraising:

Gatecoin disclosed they still haven’t managed to secure proper funding to reimburse the affected clients. The company continues to negotiate with different clients about the terms of ‘multi-million block trades’.

Our proposed debenture has had very little interest from potential investors so far, and we welcome any contact from prospective participants.

According to Gatecoin, the company managed to recover 5,000 ethers thanks to the collaboration of US-based crypto exchange Poloniex. It would appear that the hackers tried to cash-out a small amount of the bounty.

Aurélien Menant, Gatecoin’s CEO, explained that the company had to lay off it’s former CTO –the reason behind this decision for this was not disclosed–. The chairman said that the investors were hesitant to back a technology firm without a CTO.  Gatecoin said:

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 local cyber-crime division of the Hong Kong police continues to investigate the hack, but no further disclosures have been made as this is an on-going investigation. The company expects to re-launch the exchange on August.

Source: Captain blog

Image via Gatecoin’s G+ Profile

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