Gatecoin Raised $500,000 to Recover from Ethereum Cyber Hack

Hong Kong regulated Bitcoin and Ethereum exchange, Gatecoin, is expected to re-launch in early August.

Good news for former clients of Hong Kong regulated financial institution for blockchain assets, Gatecoin. The founder and CEO of the firm, Aurelien Menant, reports he raised an equity investment of $500,000 from an unnamed publicly listed Japanese investment company.

Back in May, Menant notified investors of a cyber attack on Gatecoin’s system resulting in a loss of client deposits. “In total, the hot wallet breach resulted in the loss of ETH 185,000 and BTC 250, which is equivalent to USD 2 million. This represents 15% of total crypto-asset deposits held by Gatecoin.”

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Aurélien Menant, founder and CEO, Gatecoin
Aurélien Menant, founder and CEO, Gatecoin

The newly raised funds will be used to open the venue back for trading, according to Menant. The investment will be primarily used to upgrade the security infrastructure of Gatecoin, including hiring a new CTO, with an extensive background in systems security. He 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.”

Gatecoin’s CEO also informed investors that thanks to help and cooperation from Poloniex, the US-based cryptocurrency exchange, they have so far recovered ETH 5,000 of the stolen Ethereum. While not being at liberty to provide more details about the continuing criminal investigation into the system breach, he does assure that “we are in daily contact with the Cyber Security and Technology Crime Bureau of the Hong Kong Police Force.”

The Hong Kong regulated Bitcoin and Ethereum exchange is expected to re-launch in early August.

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