$3.6 Million Stolen From Indian Coinsecure, Blames CSO

Coinsecure lost 3.6 million dollars worth of bitcoin and blames their CSO on the theft. CEO Mohit Kalra wrote on the announcement:

“Our system itself has never been compromised or hacked, and the current issue points towards losses caused during 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.”

CSO declares his innocence, but CEO find it hard to believe because CEO and CSO were the only people who held keys to the wallet.

Also the Cyber Crime Cell Delhi Police has released statement about the matter: “In the absence of a legal framework, it is not advisable for citizens to deal with virtual currencies such as bitcoins. These currencies are normally used by criminals operating on the dark web or the hidden web. Legal, bonafide businesses do not normally use bitcoins. Therefore any request for business transaction in bitcoins should raise suspicious and should be avoided.”

Customers are promised a refund. “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. However, if recovery of siphoned BTC is not possible, then we will apply the lock in rates as of the 9th of April, 2018. 10 percent of the Coin Holding Balance will be refunded in BTC and 90 percent will be returned in INR.”