Coinsecure announces refund for affected users and a bounty of Rs 2 crores on recovery of hacked digital currency

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Published: April 14, 2018 11:38:58 AM

The company has stated that it will use its own fund to reimburse its users. Over 11,000 users are stated to be affected from the digital robbery, marking it the biggest digital currency theft in the country.

Cryptocurrency exchange Coinsecure announces refund for affected users and a bounty of Rs 2 crores on recovery

The Indian cryptocurrency exchange Coinsecure, that recently got hacked, announced that it would start repaying its customers affected from the hack. The company also announced a bounty of Rs 2 crore to people who will help them recover the stolen Bitcoins. Earlier this month, the exchange reported a loss of 438.318 bitcoins, worth over Rs 20 crore at the time of hack from its digital wallet.

The company has stated that it will use its own fund to reimburse its users. Over 11,000 users are stated to be affected from the digital robbery, marking it the biggest digital currency theft in the country.

This robbery is being seen as an insider fraud. The company recently filed a complaint with the Delhi Cyber Crime cell on the theft of the coins, they claim it to be an insider job. Coinsecure has requested Delhi police to seize its Chief Security Officer’s, Amitabh Saxena, passport as he might leave the country.

The company holds over 200,000 users and has currently stopped all deposits and withdrawals from its exchange. It further claims to have the address where the digital assets were sent. They have further shared that address on their website.

Coinsecure claims that the hacker stole Bitcoins in two days and is now transferring those Bitcoins to multiple wallets. The amount left in the hacker’s wallets is 139.420 bitcoins, that’s almost Rs 7.4 crores at the time of writing. Meaning, the hacker has transferred around Rs 13 crores.  

This is not the first case of insider fraud in the country. Earlier this year, a cryptocurrency investment firm Gainbitcoin’s founder was arrested on charges of fraud. Amit Bharatdwaj and his partners managed to scam over $300 million before they were caught.

According to reports, fraud alone in the cryptocurrency industry costed around $670 million this year.  

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