Crypto exchange Gatecoin announces repayment delay of stolen ethereum

Gatecoin, the Hong-Kong regulated cryptocurrency exchange which back in May 2016 experienced a hack and theft of ETH and BTC (roughly $2m worth) has today provided their latest update on its repayment schedule of the ETH portion of the debt (the BTC debt has since been fully recovered).

Back in February, the company provided a detailed update on specific plans of action to be taken to develop business on the exchange which would improve repayment time, they also said then they would work to repay the next portion of the ethereum debt (ETD) within the next two months.

Fast forward now to April, Gatecoin said today a deal fell through which would have provided a major source of revenue that would have enabled them to repay a significant portion of the ETD. Following the February update, they were unable to close the deal associated with that revenue stream and subsequently could not compensate for additional revenue sources or funding so they will need to delay repayment further.

Gatecoin declared that since its re-launch in mid-August 2016, volumes on the exchange have remained lower than expected and its been struggling to grow revenues from additional (non-exchange) streams. The team said they have prioritized the use of its current financial resources to maintain the sustainability of the firm so that the company can continue operating and eventually repay the ETD.

Some potentially good news and more details:

Aurélien Menant, CEO of Gatecoin

Aurélien Menant, CEO of Gatecoin said:

“I understand that this update may not have met your expectations regarding the ETD repayment. I also acknowledge your potential frustrations with the delay of the ETD repayment schedule and realize that the longer we take to address this issue, the less likely you will be to trust or use our services in the future.”

“However, I can reaffirm our commitment to repay the stolen funds and can assure you that this is the main priority of the entire Gatecoin team.”

“Since the hack occurred, we have been working tirelessly to resolve this situation as soon as possible so that we can move on from this challenging chapter in our history and focus on our goal of building the global gateway to decentralized applications.”

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