2gether to compensate clients €1.2m stolen in hack with its tokens

The eponymous Spanish crypto startup behind the crypto-trading app 2gether acknowledged that it could not immediately return €1.18 million to users. An equivalent of a quarter of client funds was lost in the breach on July 31.

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— 2gether (@2gether_global) August 2, 2020

The company said it did not have sufficient own funds to fully settle with the affected clients.

Over the past two days, the company has managed only to reduce losses from 29% to 26.79% of user assets held on the Kraken exchange. At the same time, the integrity of euro-denominated fiat accounts, Bitcoin and Ethereum wallets, and the app accounts was preserved.

Negotiations with a potential investor ended unsuccessfully.

“With great regret, we must acknowledge that, if we had the ability to cover the damage from our own funds, we would have done so,” the company said.

2gether ultimately said that the current only viable exit from the situation is to compensate with the native ERC-20 token 2GT at its issue price of five euro cents. The token is used to access additional features of the app.

Alongside this, the company will continue seeking opportunities for full restitution. If circumstances align, affected clients will recover the stolen funds and receive the same amount in 2GT.

The startup’s leadership pledged to answer all user questions during an AMA session. In the near term, the company’s specialists will continue work to restore the service with all necessary security measures.

Co-founder Salvador Casero drew attention in July 2018 for his bold assertion that crypto- and fintech companies had already won the financial battle against banks.

Earlier on ForkLog, a special feature looked at popular fintech apps that support cryptocurrencies.

As reported last month, ShapeShift unveiled the mobile version of the popular cryptocurrency exchange platform.

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