Published: Sat, April 14, 2018
Money | By Armando Alvarado

Crypto Exchange Coinsecure Reports $3.3M USD Theft, Inside Job Suspected

Crypto Exchange Coinsecure Reports $3.3M USD Theft, Inside Job Suspected

An Indian cryptocurrency exchange, Coinsecure said on Friday that bitcoins worth almost $3 million or Rs. 19,57,05,000 was stolen from its wallet.

Bitcoins in India were trading at Rs 4,80,000, or about $7,359 on Friday, according to cryptocurrency exchange Coinome, well below its worldwide market price of about $7,771.

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. The complaint says that Kalra doesn't believe Saxena's explanation of the incident, and also urges authorities to seize Saxena's passport to keep him from fleeing the country.

Coinsecure said its employee Amitabh Saxena would have had a role to play in the incident.

A case has been registered against Saxena and chief executive officer (CEO) Mohit Kalra at the Cyber cell in New Delhi. Apparently, the private keys (passwords) that are stored offline had been leaked online.

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Karla told Times of India, "Private keys should have never been exported online".

The daily added that although the company tried to trace the hackers, it found that all the data logs of the affected wallets had been erased, leaving no clues about where the bitcoins were sent. "It looks like a crime committed intentionally", he added. The company has halted the exchange operations, as the police seized the company's servers. "Doc comes with an extremely strong understanding of the crypto space and has a lot of ideas and implementations that he will be bringing to Coinsecure", the exchange said at the time, pointing to his scientific research articles on the blockchain space. Saxena could not be contacted, so right now we only have Coinsecure's statement, however, the company has mentioned on its website that it's working to recover customers' funds, and it reassured all customers that they will be indemnified from Coinsecure's personal funds.

And, "We are hoping that as users of Coinsecure, you will stand by us in this hour of need by providing us with your help and support as we diligently work to ensure that all of our customers' funds are recovered and to leave no stone unturned". It effectively makes it impossible for users to transfer money from their bank accounts to crypto exchanges and virtually bans the use of crypto currencies in the country.

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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