Indian-based Coinsecure Losses $3 Million to theft, announces bounty – Cryptocurrency News

Indian-based Coinsecure Losses $3 Million to theft, announces bounty Cryptocurrency New

In another devastating blow to crypto businesses, an Indian cryptocurrency exchange company CoinSecure have reportedly suffered a breach which resulted in $3 million worth of bitcoins stolen.

The cryptocurrency exchange reported this incident to the Indian authorities on Tuesday, April 10th where it filled a “First Information Report (FIR)” form claiming that their Chief Scientific Officer is most likely responsible for the crime.

In the FIR form, Secure Bitcoin Traders Pvt Ltd, the parent company of Coinsecure explained that “user funds are securely kept in our bitcoin wallet, whose private keys are kept with Dr. Amitabh Saxena, CSO and Mr. Mohit Kaira, CEO at Coinsecure.in.”

Mr. Kaira further disclosed to the authorities that the company’s Chief of Security Officer was immediately notified after the attack and that he is the sole custodian of the company’s private keys. Coinsecure also revealed that we feel that he [the CSO] is making a false story to divert our attention and he might have a role to play in this entire incident.”

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Just immediately after the theft incident, Coinsecure notified its customers that they “request all users to stop depositing BTC into Coinsecure’s addresses with immediate effect until further notice.” They further disclosed that a solution is being worked out and would be ready shortly although, no date has been posted yet.

Coinsecure strongly believes that the theft was perpetrated by an insider as all evidence points to the company’s CSO. Their consecutive statement clarifies their position on the matter which says that “We regret to inform you that our bitcoin funds have been exposed and seem to have been siphoned out to an address that is outside our control. Our system itself has never been compromised or hacked, and the current issue points towards losses caused during an exercise to extract BTG to distribute to our customers.”

The statement also firmly points that during an extracting exercise to distribute coin to its customers, the CSO Dr. Amitabh Saxena claims that the $3 million USD was lost in the process.

Notwithstanding this incident, Coinsecure fully believes that the company growing albeit gradually and that the company was about to implement a multi-coin architecture system before the incident. Coinsecure further pleaded with their customers to still support them through this trying time while revealing that it is working round the clock to ensure that all customers’ assets are fully recovered reimbursed even if it has to access fresh funds from their own personal account.


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A Bounty to recover stolen cryptocurrencies

Economic Times India reported that Coinsecure has placed in an effort to recover the money stolen from the accounts of about 11,000 of its customers. The exchange will pay Rs. 2 crores (about $ 307 thousand) to anyone who will help them recover the stolen bitcoins. Bounties for cyber attacks on crypto exchanges is not new, thanks to Binance exchange placed $250,000 on the head of a hacker who tried to steal from its customers. They went ahead to devote a $10 million fund to dissuade attackers in the future.

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