Crypto Exchange Coinsecure Announces Customer Repayment Plan After $3.3M Theft

Announcements, Crime, News | April 17, 2018 By:

India-based crypto exchange Coinsecure said that it will start repaying its customers following a $3.3 million theft last week.

On April 9, the Indian crypto exchange lost 438.318 bitcoins (approx. $3.3M USD) from a digital wallet that was holding users’ funds. Coinsecure has implicated its CSO, Dr. Amitabh Saxena, in its complaint filed with New Delhi police. More than 11,000 customers are said to be affected by the theft. At the time, Coinsecure CEO Mohit Kalra promised to use the company’s own funds to reimburse customers.

In an update posted Saturday on the company’s homepage, Coinsecure reassured customers that all of the balances held in Indian rupees remained secure. But the stolen bitcoins are currently being tracked and have yet to be recovered.

“Through the course of the investigation, should we be able to recover all of our BTC, all our customers’ BTC holdings will be refunded as per the balance they held with Coinsecure,” the exchange said. “However, if recovery of the siphoned BTC is not possible, then we will apply the lock-in rates as of the 9th of April, 2018. 10% of the Coin Holding Balance will be refunded in BTC and 90% will be returned in INR.”

Kalra said they will start returning funds to the affected customers within the next 15 days. He added that they are working to get the website back up and allow customers to login and withdraw funds.

In a separate update, Coinsecure offered a bounty reward of 10% for assistance in recovering the losses. The company is also working with global exchanges and US-based blockchain investigative firm Chainalysis to track the movement of the stolen funds.