Coinsecure, one of India’s biggest cryptocurrency trading platforms says that about 438 Bitcoins have been stolen or misplaced allegedly by an employee. The company assures that their databases were not hacked, and they have promised to compensate the victims with the company’s own funds.
Coinsecure reports on their website that their bitcoin funds “have been exposed and seemed to have been siphoned out to an address that is outside our control.” The same letter mentions that “we reassure all our customers that you will be indemnified from our personal funds,” which would be the answer to the first question any client would ask. They have also mentioned in the same letter that Coinsecure was “at the cusp of moving into a multi-coin architecture before this incident.”
Although the company has hope of tracking and recovering the lost bitcoins India’s tough stance on bitcoin trade might make it harder than it would have been in normal circumstances. The Reserve Bank of India has banned all activities related to cryptocurrencies and they do not recognize it as a legal asset. Bloomberg reports that “Saxena couldn’t immediately be reached for comment when tried through Coinsecure. The company’s director Mohit Kalra — who signed on the complaint — couldn’t be reached on his mobile phone Friday.”
Coinsecure reports that Dr. Amitabh Saxena, the CSO, has lost the bitcoins during the extraction of the private keys. Their parent company Secure Bitcoin Traders has filed a complaint against Mr. Saxena as a suspect in the loss of bitcoins worth approximately 3 crore Indian Rupees (3 million US dollars). After weeks of struggle, bitcoin jumped past 8000 USD on Friday. At the time of publishing this article the price of a bitcoin had reached 8,151.08 USD.
News of this latest bitcoin theft comes just a few days after a Vietnamese start-up company swindled the investors a sum of approximately 660 million dollars. In January Coincheck, another bitcoin trading platform was hit by a heist of 350 million USD. It looks like controversies and different laws governing crypto assets have been exploited by the opportunists to the maximum.