Hong Kong-based digital currency exchange Gatecoin has announced that it has closed an equity investment of USD 500,000 from a listed Japanese investment group, following several weeks of meetings and negotiations.

In addition to improving the security infrastructure of the platform, the funds will be used to ensure the company remains fully operational as it continues to raise funds to reimburse the stolen ETH. In May, Gatecoin lost 185,000 ETH and 250 BTC (equivalent to USD 2 million), and representing 15% of its crypto-asset deposits, in a hot wallet breach.

“As part of the security upgrade, a new CTO, with an extensive background in systems security, and additional engineering talent with experience in secure financial systems will join the Gatecoin team”, CEO Aurélien Menant said.

Speaking of the stolen ETH, Menant said that 5,000 ETH has been recovered so far with the help and cooperation from Poloniex, a US-based cryptocurrency exchange. In addition, he also said that negotiations are going on with several clients on the terms and procedures of USD multi-million block trades, from which Gatecoin would be able to reimburse a part of the stolen ETH funds from its own pocket.

“Our proposed debenture has had very little interest from potential investors so far, and we welcome any contact from prospective participants”, Menant said. “We have been receiving many ideas, proposals and offers from members of the community across several channels on other ways we could approach the ETH fundraising. We greatly appreciate these proposals, and we have considered or are currently working on a multitude of potential solutions”.

Menant further said that with the confirmation of this initial investment, the Gatecoin team is optimistic about the prospect of attracting a network of co-investors to pledge additional amounts, which will only be used to reimburse clients’ ETH. He also revealed plans to relaunch the exchange in early August.

“We have already been in touch with several potential co-investors and we are confident that this lead investment will accelerate their decision making”, he said.