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India: Coinsecure [Finally] Reveals Compensation Process for $3 Million Bitcoin Theft

After delays, Indian cryptocurrency exchange Coinsecure outlined its compensation process for customers impacted by the theft of 438 bitcoins in April, worth approximately $3 million at the time.

In an announcement on its website on Tuesday, Delhi-based cryptocurrency exchange Coinsecure revealed it will begin processing customer claims for compensation in rupees, India’s fiat currency. Customers who were affected by the early April heist ware required to sign an agreement that, controversially, absolves the exchange operator of any future inabilities and turned in physically to Coinsecure’s office before June 30th, 2019.

“Please note that the last date for submitting claims to us along with all appropriate documents is June 30, 2018,” Coinsecure wrote, giving its nationwide customers fewer than five working days to submit their claims alongside KYC documents.

The exchange added:

We will not entertain any claims received after June 30, 2018 and we shall have no liability towards any users who try to submit claims after the said date.

Coinsecure did not reveal any details of an investigation into the theft, which it alleges to be an insider job by its ‘chief scientific officer’ who, at the time, possessed the private keys of the exchange’s wallet containing customers’ bitcoin holdings.

Within days of the theft, Coinsecure offered a 10% bounty to information leading to the recovery of the stolen bitcoin. In a promise to refund its customers, Coinsecure said it would return the siphoned bitcoin if it were successful in recovering the stolen coins. If it failed to re-possess the bitcoin, the exchange operator revealed it would refund 10% of the stolen account balance in bitcoin and the remaining 90% in Indian rupees.

“[W]e 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],” Coinsecure said at the time.

Bitcoin was trading near $6,850 per coin on the same day, so customers could stand to profit through their compensation claims if current prices remain under that figure this week. At press time, bitcoin is trading at $6,200.

Coinsecure Claims by CCN on Scribd

Featured image from Shutterstock.

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