Bitcoin worth Rs 19 crore stolen from crypto exchange Coinsecure; company suspects its own employee

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Updated: April 13, 2018 1:20:03 PM

Coinsecure -- a Bitcoin trading platform has turned out to not be very secure. The company has reported that over 438 Bitcoins whose worth was about Rs 19 crore was stolen from its Bitcoin wallet.

Bitcoin worth Rs 19 crore stolenCoinsecure said that 38 Bitcoins worth Rs 19 crore was stolen from its wallet. (Image: Reuters)

Coinsecure — a Bitcoin trading platform has turned out to not be very secure. The company has reported that over 438 Bitcoins whose worth was about Rs 19 crore was stolen from its Bitcoin wallet. The company’s CEO Mohit Kalra is claiming that its own CSO Amitabh Saxena could be behind this theft even as they also suspect the private key (password) of their offline database could have been leaked online.

An FIR has been registered with the Delhi Police Cyber Crime requesting them to seize Amitabh Saxena’s passport. So what has happened? Coinsecure is a trading platform which not only allows Bitcoin trading but also provides a wallet service in which registered users can keep their funds both as Rupee or as Bitcoin.

From what can be understood from their complaint is that Amitabh Saxena who also had the access to the private key to the wallet might have played a role in getting the Bitcoin syphoned off from the wallet. It was Amitabh Saxena who informed the company on April 9 that Bitcoins have been stolen.

“…The current issue points towards losses caused by an exercise to extract BTG (Bitcoin Gold) to distribute to our customers. Our CSO, Dr. Amitabh Saxena, was extracting BTG and he claims that funds have been lost in the process during the extraction of the private keys,” Coinsecure said in a statement. The company’s website is down since the theft. Coinsecure has said that it is ready to compensate loss to its consumers out of its own pocket.

Coinsecure was reported to be India’s first cryptocurrency exchange to offer real-time trading and its CEO Mohit Kalra who believes that Bitcoin is a global currency on which no government has any control.

It can be recalled that Coinsecure was one the 9 Bitcoin trading exchanges that were surveyed by the Income Tax Department in December. Recently, the Reserve Bank of India issued an order asking all regulated entities to cease any business with cryptocurrencies like Bitcoin.

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