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Indian Exchange Coinsecure Claims Insider Job in $3 Million Bitcoin Theft

Indian Exchange Coinsecure Claims Insider Job in $3 Million Bitcoin Theft

The New Delhi based exchange on April 8 lost almost 438 bitcoins worth over Rs 20 crore after most of its wallets were hacked.

Indian bitcoin exchange Coinsecure has disclosed a theft of 438 bitcoins, valued at over $3 million at press time, from its wallet in what is the country's biggest cryptocurrency theft to date.

In its police complaint, the company claimed that on April 9, Saxena contacted them stating that the funds have been stolen due to an attack, but Kalra did not believe his explanation. Its parent company has filed a complaint with local police and asked authorities to bar Saxena from leaving the country until the probe is completed.

The FIR says, "As the private keys are kept with CSO Amitabh Saxena, we feel that he is making a false story to divert our attention and he might have a role to play in this entire incident". That said, users who had taken their Bitcoin offline or stored them elsewhere will not be affected, only those who were using Coinsecure as a wallet as well as an exchange.

As the private keys were leaked online with no data logs left behind, the company suspected it to be an insider's job.

Karla told Times of India, "Private keys should have never been exported online". A case was registered under IPC sections and Section 66 of the IT Act. It looks like a crime committed intentionally.

Since the theft, the company's website has been shut and the following message been posted: "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".




According to cryptocurrency exchange Coinome, on Friday, bitcoins were trading at Rs. 4,80,000 or about $7,359, which was well below its worldwide market price of about $7,771.

Coinsecure in its official statement has stated, "Irrespective of funds being recovered, we re-assure all our customers that you will be indemnified from our personal funds".

Kalra said that that even if funds are not recovered, his company is willing to pay from its own pocket to compensate its customers.

The company has launched a complaint with the Cyber Cell in Delhi and is also conducting an investigation with the help of cybersecurity experts.

Coinsecure is one of the more well known crypto-currency exchanges in India, and one that multiple Bitcoin traders have recommended to us in the past.

It is noteworthy that Coinsecure incident has occurred days after the Reserve Bank of India (RBI) barred banks and financial institutions from dealing in cryptocurrencies from April 6th, 2018.


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