Bitcoin Exchange Implicates Employee In $3 Million Theft

Bitcoin Exchange Implicates Employee In $3 Million Theft

Cheryl Sanders
April 14, 2018

Coinsecure, one of the leading cryptocurrency exchanges in India, announced the biggest heist in the country so far, valued at $3.3 million. A case has been registered under the IPC and Section 66 of the IT Act. In a update on its website, Coinsecure said: "We are seeking help from the Bitcoin community and all our users who can help us identify the hacker or give us any information that could lead us to recover funds".

Coinsecure has over 200,000 users trading on its platform daily.

What exactly happened? The exchange, which has over two lakh users across the country, found that all the bitcoins that were stored offline had vanished.

Although Coinsecure is telling its users that it was not hacked, details provided on a report by The Times Of India (TOI), suggests that private keys were leaked online, which allowed hackers to steal these bitcoins. The website of the company has since then remained shut. The CEO of the bitcoin exchange, Mohit Kalra, has accused his Chief Strategy Officer (CSO) of stealing 438 Bitcoin from the operator's main wallet. "Our Chief Strategist officer (CSO) Dr. Amitabh Saxena was extracting BTG and he claims that the funds have been lost in the process during the extraction of the private keys", Coinsecure added. "It looks like a crime committed intentionally", he added.

"The current issue point towards losses caused during an exercise to extract BTG to distribute to our customers".

"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", the exchange, run by Secure Bitcoin Traders Pvt. "We have shared our suspicions with the Cyber Cell, and contacted specialists to find out the source of the hack and trace the bitcoins", TOI quoted Kalra as saying. "Irrespective of funds being recovered, we re-assure all our customers that you will be indemnified from our personal funds".

According to the company, its systems were not compromised, but rather, this was an inside job. It also serves as a Bitcoin wallet. The senior security officials of the company have also been called in for questioning.

Ningning Niumai, founder of Greymeter, a social network for college students and young professionals tweeted that Dr. Amitabh Saxena was appointed nearly 6 months ago by the company, therefore, handing over private keys of Coinsecure is very suspicious.

Other reports by iNewsToday