Leading Exchange Firm Coinsecure Loses Bitcoins Worth Rs 20 Crore After Getting Hacked

| April 13 , 2018 , 14:17 IST

In one the of biggest thefts of cryptocurrency in India so far, a leading bitcoin exchange firm identified as 'Coinsecure' lost bitcoins worth Rs 20 crore after most of its wallets were hacked and 440 bitcoins were stolen, the company confirmed on Thursday.

The company, having more than 2 lakh users across the country told the police that they found out about the theft of the bitcoins on Monday when they were going through all the wallets and found that all the bitcoins stored offline had vanished. Later, it was discovered that the private 'keys' passwords kept by the company offline had been leaked online, resulting in the hacking.  

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When the company tried to trace the hackers, they found that all the data logs had been erased, leaving behind no trails to where the bitcoins had been transferred.

“We regret to inform you that our bitcoin funds have been exposed and seem to have been siphoned out to an address that is outside our control. Our system itself has never been compromised or hacked, and the current issue points towards losses caused during an exercise to extract bitcoins to distribute to our customers,” the company stated.

Senior officers of Delhi Police’s Cyber Cell said that a case had been registered under IPC sections and Section 66 of the IT Act.

As bitcoins and other cryptocurrencies gained fame, Union Finance Minister Arun Jaitley in Parliament in January 2018 specified that cryptocurrencies like bitcoin are not legal tender in India and those investing in them are at the heightened risk of loss.