Coinsecure Postpones Refund of Bitcoins to Indian Customers
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Coinsecure Postpones Refund of Bitcoins to Indian Customers

Coinsecure’s Indian wing has postponed the repayment of funds due to its customers because of stolen bitcoins. The exchange disclosed that it was unable to make any repayment at this juncture for a variety of reasons. This apart, investigations are also underway thus restricting itself from repaying the customers of stolen digital currency. Earlier this year, Japan’s Coincheck reimbursed money worth $400 million stolen in the same virtual currency. Stealing of bitcoins has increased due to its prominence in the cryptocurrency market and its value among the digital coins.

Confirmation of Theft

Earlier, Coinsecure has confirmed that 438.31859715 bitcoins were stolen on April 8. This was valued approximately $3.067 million or 200 million in local currency. Following this, the exchange announced on April 21 that it was engaged in the claims process to refund the stolen value through the local currency. The cryptocurrency exchange was hoping that it could start the process and advised investors to submit their claims for withdrawal requests. But, the exchange could not meet the deadline set by it, and it has now come forward to explain the reasons behind the delay in repaying its customers.

The exchange disclosed that “When investigations are underway, we don’t have much of a say and do need permission from the authorities to start the compensation process, which we are yet to receive.” That is precisely clear in blaming the authorities for the delay in disbursing the claims. However, the exchange indicated that it would roll out fresh contracts to all its users who were having a balance.

Coinsecure announced that it is working with the authorities so that they could be in a position to recover the lost bitcoins. The needle of suspicion fell on its chief security officer, Amitabh Saxena, for masterminding the heist. On April 10, the exchange lodged a complaint with Delhi Police’s Cyber Crime Cell. The police officials have wanted Coinsecure to impound the suspect’s system so that it could investigate further in the matter. The exchange followed the instructions and collected the laptop of its CSO.

The CEO of the exchange, Mohit Kalra, has written a letter to the authorities pointing out that Saxena had the private keys. Therefore, the exchange was holding him responsible and that he was only trying to make a false story. This was meant to divert the attention of the exchange, as well as, police. The CEO strongly believes the involvement of Saxena in stealing the bitcoins.

Lock In Rates

The exchange disclosed that if it could recover all bitcoins, then it could reimburse all customers of their holdings as of April 9. On the other hand, if the exchange failed to get back the stolen digital currency, then it would invoke the rule of lock-in rates on the same day, i.e., April 9. That entitles coin holders to get 10 percent of the coin through bitcoin while the balance 90 percent would be in the form of local currency.

Coinsecure has also announced a reward of 10 percent to help it recover the stolen digital currency.

Article written by Mark Rizzn Hopkins

Mark is a hardcore cryptocurrency fan. He has been following all of this very closely since 2011, and enjoy learning more technical details around blockchain as well as theorizing and architecting new solutions utilizing blockchain. To know more about Mark, follow him on Twitter.