Spanish Crypto Exchange 2gether Stops Operations, Affects 100k Users

Key Takeaways

  • 2gether unexpectedly ceases operations, denying consumers access to their accounts.
  • Thousands of users are now stuck and thus unable to transfer their money as a result.
  • The platform also erased its Twitter account and vanishes from social media altogether.

The recent decrease in the price of cryptocurrencies has had an effect on a large number of cryptocurrency exchanges and lenders, leaving them unable to return customers’ money, bankrupt, or in the form of increasing further funding to keep operating. The only Spanish cryptocurrency exchange that appears to have been significantly impacted by the current crypto scenario is 2gether.

2gether, one of the pioneer crypto exchanges in Spain, abruptly ceased operations, denying consumers access to their accounts. The company revealed in an email to consumers why it had to make this decision, citing the situation of the industry at the time. 

It follows that 2gether’s Twitter account has been deactivated. In short, the platform’s users are currently in the dark because no instructions on how to transfer money have been provided. The 2gether website currently has a message that reads “under repair.”

Spanish Crypto Exchange 2Gether Stops Operations, Affects 100K Users
Deleted Twitter Account

In the company’s words:

“After five years of serving the crypto community, we are forced to close the private account service. The lack of resources and the crypto winter prevent us from providing the service with the quality and guarantees [with which] other nearby providers are doing it.”

After recently proposing a planned €20 fee for the usage of its service, the exchange received animosity from its users. At the time, 2gether allegedly asserted that the company lacked the funds to continue offering its free service. Customers would now have to pay a set sum for ongoing access, they announced.

Asufin, the Financial Users Association of Spain, has reported that this action will have an impact on 100,000 clients who relied on 2gether to process their transactions and protect their assets. The group is getting ready to file a lawsuit on behalf of each and every exchange consumer.

A warning was earlier issued by Bank of Spain Governor on the possible fallout of crypto space in the country.

However, users of 2gether are not allowed to transfer their funds to their personal wallets or other exchanges. Instead, the company has shut its platform and advised consumers that everyone must contribute the equivalent of $20 (or $20.35) so that the exchange may continue to function in terms of maintaining the status of their accounts.

The CEO of Binance, Changpeng Zhao, tweeted his disappointment at the untimely shut down of the company.

Previously, 2gether has had issues. The Vanguard Barcelona claims that in August 2020, 2gether experienced a hack that cost its users roughly 114 BTC and 276 ETH. Since the cryptocurrency exchange was unable to reimburse customers who had lost money, a €1.5 million funding arrangement that closed in January 2021 gave 2gether a lifeline.

It is believed that the reaction to the announcement may have precipitated yet another major customer departure.

Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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