$ 1,4 Million Hacked European Cryptocurrency Exchange Claims It Can't Afford to Refund Users

A hacked European cryptocurrency exchange for $ 1,4 million claims it can't afford to refund users - together logo 1024x576A Spanish cryptocurrency trading platform was hacked for around $ 1,4 million, and company executives say they don't have the money to pay back customers.

User private keys fully exposed

CEO Ramon Ferraz Estrada said on Monday August 3 during a long series of tweets that the violation of July 31 affected crypto investment accounts and exposed and left users' private keys in the hands of criminals.

Subsequently, in a separate announcement, Estrada expressed the doubts that had arisen in the direction of the exchange regarding the repayment of the stolen funds to the legitimate owners, citing a lack of financial capacity.

The idea of ​​the company to compensate for customer losses

Rather, company officials thought of offering customers the platform's native 2GT token as full compensation. "In the two days following the attack, we worked to find the necessary funds to cover all positions," said the administrator in the note.

“More specifically, and up until a few minutes ago, we worked with an investment group with whom we were unfortunately unable to reach an agreement,” he added. On July 31, hackers would liquidate € 1,18 million ($ 1,4 million) from the trading platform's cryptocurrency investment funds - the equivalent of 27% of the total funds of 2 in total.

No further details were revealed as to exactly how the attack happened. "We want to compensate for the amount of stolen cryptocurrency (26,79% of your position before the attack) with a 2GT volume equivalent to the issue price of 5 cents," said the exchange.

“In addition, we are committed to continuing to seek, at full capacity and as soon as possible, additional funds to recover for each of your cryptocurrencies,” he said. The 2gether token only allows exchange transactions within the platform.

An Ask-Me-Anything session on Reddit is scheduled to respond to customer requests

The exchange is scheduling an Ask-Me-Anything (AMA) session on Reddit to respond to customer inquiries, while further updates, perhaps particularly on the still unclear refund history, will be shared on social media.

This is the second European platform that loses a substantial sum of money due to cybercriminals in a matter of weeks after the theft of 336 BTC, or $ 3 million, in Cashaa, based in the United Kingdom, in early July .

Cashaa said the hacker attacked one of his Blockchain.com wallets, which is used to store BTC and make transfers from the exchange. The hacker is believed to have installed malware on one of the computers in the exchange in the moments leading up to the attack.

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