February 25, 2021 05:11 AM RSS

Spanish Crypto Exchange Unwilling to Compensate Customers

  • Wall Street Rebel | James DiGeorgia
  • 02/01/2021 2:13 PM
Spanish Crypto Exchange Unwilling to Compensate Customers

 2gether has broken some heart-wrenching news to its customers in the Spanish Crypto Exchange. The exchange made announcements that it cannot fully reimburse the total amount of funds that got stolen during last year’s hack to all its customers.

 

Customers that lost Bitcoin and Ether assets will benefit from the compensation plan the company has set in motion to settle their customers. Close to 5000 clients will benefit from this program, which is quite a relief.

2gether has determined that hackers used a piece of malware to facilitate exchange transfers and withdrawals. The malware informed 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.

 

Alt: (Spanish Crypto exchange)

 

As per the statement released by the Exchange’s CEO, only 91% of the total customers will be compensated fully by the exchange. For the other 9%, the company has availed of several other options to navigate the loss.

In the email released by 2gether’s CEO, Paley Marshall, the company has been working tirelessly on capital round to strengthen their security systems and pay customers damages. So far, they have surpassed their € 1.2M target, all thanks to the community, private investors, and partners in the company.

The company’s initial plan was to settle everyone for their lost funds. Despite meeting their settlement target, the exchange cannot actualize these reimbursements. The two digital assets’ prices, especially Bitcoin, have kept rising exponentially. If 2gether were to settle all Bitcoin investors per the current market value, the funds would not cover it.

 

The Way Forward Given the Circumstances

The company has managed to raise € 1.5M at the moment. They intend to replace 100% of the BTC and ETH that was stolen and not yet converted to capital or 2GT tokens. This case scenario will only account for 91% of the affected users. Unfortunately, the most affected customers are the 9% who cannot settle the current capital accumulated. 2gether has a proposition to these customers.

2gether will replace up to 99% of their BTC and ETH assets stolen in the hack and not converted. The exchange will refund in value all  Euros lost, excluding those converted to Capital or 2GT tokens.

The Spanish Crypto Exchange has given respective customers the rights to accept or decline this offer. Declining the offer would imply that the company has to go back and re-devise better means to settle the funds.

 

 

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