Digital currency exchange Gatecoin has had a tough time recovering from a massive hack they experienced in May. In total the amount of cryptocurrencies that were stolen from the exchange’s hot wallets amounts to the equivalent of $2 million USD.
In a new update from Aurélien Menant, the CEO of Gatecoin, he said that the exchange is determined to reopen in July, however, there are some challenges. There is still a lot of currencies that have yet to be returned to their owners, and Gatecoin is adament on being able to return them, rightfully so, to the people who had it stolen from them. A major chunk of stolen funds were from ethereum, 185,000 ETH to be precise. They also lost 250 BTC in the hack.
As part of the process to reopen and make users whole again, Gatecoin is trying to raise funds in a few different ways. In the post by Menant, he says the three avenues they are going down are:
Gatecoin has confirmed a first major commitment from an investor and currently working to close the deal. The amount has not been disclosed at this time. Menant said the process is taking longer than expected because of necessary due diligence.
Debenture, which is an unsecured credit (loan) issued by a company is another option, but Gatecoin says they have only received small offers so far.
Profit from Block Trades
Block trades are when someone purchases a large block of a digital currency at a discount. For example they could purchase all 250 BTC from a mining company or an over-the-counter operation at a discount, and then resell it at retail prices to make a profit. Gatecoin said they are working on closing several block trade deails to reimburse a sizable share of stolen funds.
In addition to the different ways they are trying to raise funds to reimburse users, Menant also said they are recruiting new technology staff to replace the two technology team members that they terminated. The goal is to relaunch the exchange next month.
Previously Gatecoin had offered a bounty in attempt to get the stolen funds back. The bounty was 25% (of returned funds) and lifetime free trading on Gatecoin for the return of any ETH and BTC. Unfortunately the bounty doesn’t appear to have garnered any results.