Back on July 31, 2020, 2gether, the collaborative crypto-trading platform was struck by a cyber-attack, with the perpetrators able to steal 114 BTC and 281 ETH, worth a combined €1.18 million from users’ accounts. At current value, this is an estimated €2.9 million. Despite the confounding circumstances and challenges, 2gether was able to build a plan to deal with the consequences of the attack in an effort to preserve the platform’s integrity.
Most notably, 91 percent of compromised users will be getting a full refund in BTC or ETH, with a matching value. Simultaneously, 2gether is working on boosting its platform to have far stronger security protocols.
2gether compensates users following the 2020 cyberattack
In order to raise the capital for executing this two-step plan, 2gether worked with the whole community, private investors and its partners to create an equity crowdfunding round, closing at the legal maximum of €1.5M and 125% of its target. The fundraising enabled 2gether to accomplish the following:
- Boosting security protocols
Security is critical in the relatively new crypto space, and this has been already seen in the case of the ledger hack and the cyber attack on 2gether, among others. Since the very first day of the attack, 2gether has been working hard to execute its plan to integrate better security protocols in order to make sure that such a disaster will be avoided in the future. The latest measures include:
Restructuring and reengineering frameworks: The firm plans to reorganize user funds in order to limit attack perimeters. They will also reengineer databases in order to avoid personal data leaks and the transactional processes will be streamlined, with restricted permissions and revised procedures and policies.
Upgrading cyber wall defenses: Upgrading its antivirus to a top three in the industry, as well as adding the firewalls, and VPNs, while also strengthening customer authentication protocols.
Insurance reinforcement: Reviewing risk management frameworks and creating a coverage model in order to prevent potential future hacks, while negotiating for cyber insurance on international markets.
Boosting resources: Boosting resources on key areas, including CISO, system management and DevOps.
- Full refund for affected users
The most crucial step that 2gether has already taken is the full refund to its users in BTC or ETH with matching value, an option is currently available for 91 percent of the users. The remaining nine percent can accept a full fiat compensation for the value of the assets lost at the time of the attack or opt for another compensation package with 2gether.
“Despite the challenges of managing a cyber attack on our platform, 2gether is proud that it compensated its users in the assets that they lost to ensure they don’t lose momentum on the rising value of crypto,” said to Ramon Ferraz, CEO of 2gether.
He added, “Furthermore, boosting our security protocols and reevaluating our internal frameworks will minimize the likelihood of any future cyber attacks.”
2gether made sure to approach the aftermath of the hack with a two-step program, expecting to emerge from the attack much stronger.