Gatecoin raises $500,000 from Japanese investment company

Gatecoin raises $500,000 from Japanese investment company

Hong Kong based bitcoin and cryptocurrency exchange Gatecoin has provided an update, stating that they have raised an equity investment of $500,000 USD from a listed Japanese investment company. The name of the investment company was not disclosed.

Gatecoin has been struggling to reopen their exchange after a immobilizing hack in May which left the exchange closed down and at a loss of $2 million USD; a combined loss of bitcoin and ethereum currencies. In a previous update in June, Gatecoin had said that they were seeking investors in an attempt to make users whole again. The plan at the time was to reopen in July.

July has come and Gatecoin is now saying that the tentative relaunch will be in August, but that Gatecoin has secured this new investment which is promising for users who lost funds on the exchange. In a Medium post by Gatecoin CEO Aurélien Menant, he said that the new investment will be used to strengthen their security team and invest in additional security infrastructure in order to keep the company operational. Gatecoin is still looking to raise funds for ethereum funds that were stolen.

Updated plan

The new plan is that Gatecoin will relaunch in early August, according to Menant. He also said 5,000 of the 185,000 stolen ETH has been retrieved thanks to cryptocurrency exchange Poloniex. Also stated is that the local crime investigation is still ongoing.

In regards to the delay on relaunch, Menant mentioned that part of the issue was they had to let go of their CTO, and potential investors were concerned in committing funds to a company without a CTO. This both complicated the fundraising and the relaunch. The other part of the issue is due to investor discussions, which took several weeks and funds pooled from multiple organizations in Asia as part of the $500,000 USD investment.

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david@bitcoin.com'
David is a writer, researcher, and developer who is passionate about bitcoin and blockchain. He writes for Bitcoin.com, Blockchain.com, and is the founder of Bitcoinx.io (which was acquired by Bitcoin.com). David previously used to write and curate for Myspace and has worked in the fintech and payments space for over 15 years.