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Coinsecure Offers 10% Bounty on $3 Million Theft, Customer Refunds in Rupees Not Bitcoin

Last Updated March 4, 2021 5:06 PM
Samburaj Das
Last Updated March 4, 2021 5:06 PM

Indian cryptocurrency exchange Coinsecure has reiterated its intention to refund customers after last week’s $3(+) million theft. A significant majority of the stolen funds could be paid in Indian fiat rupees instead of bitcoin – if the siphoned bitcoins aren’t recovered.

In a notice posted on its website over the weekend, Delhi-based crypto exchange Coinsecure insisted that all customer deposits in Indian rupees are safe following last week’s heist of over 438 bitcoins from the company’s wallet. Should the exchange recover all of the siphoned bitcoins over an ongoing investigation, customers can expect to be see their accounts’ balances refunded in bitcoin.

However, if the exchange is unable to recover the bitcoin, users are likely to see a majority of their stolen bitcoins to be returned in rupees.

Coinsecure explained:

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% of the Coin Holding Balance will be refunded in BTC and 90% will be returned in INR [Indian rupees].”

Bitcoin price has made notable upward gains since close of trading on April 9 when it was valued at just under $6,850 per coin. Coinsecure users stand to lose over 18 percent in bitcoin value gains – at current bitcoin prices – if the exchange is unable to recover the stolen bitcoins.

A wallet address previously holding all 438.318 bitcoins has since been emptied altogether over a span of over two dozen transactions siphoning away bitcoins in smaller sums to various addresses.

“We are working with global exchanges and experts to help us track the movement of the funds,” the exchange said.

As reported previously, the exchange pointedly blamed its own CSO (Chief ‘Scientific’ Officer) Amitabh Saxena for the theft in a police complaint. “[W]e feel that he is making a false story to divert our attention and he might have a role to play in this entire incident,” Coinsecure CEO Mohit Karla wrote in the complaint. The chief executive also sought to have the CSO’s passport seized to keep him from leaving the country amid the ongoing investigation.

In an earlier update, Coinsecure also sought help from the Bitcoin community at large to identify the hacker and aid the exchange in recovering the stolen funds. A bounty of 10%, around $356,000 at press time, is being offered to any information leading to the recovery of funds.

Coinsecure said:

We are happy to issue a bounty of 10% to the community for help rendered for recovery of BTC.

Featured image from Shutterstock.