Bitcoin Forum

You can find the details on their website: https://coinsecure.in
http://archive.is/AZnGe

This hack came just after the ban on cryptos by the central bank.Coincidence?
They are blaming their CSO for this.A single person holding all the coins doesn't seems to be ethical at all.People trusted them with their hard earned money.

UID of the CSO(who was holding the coins) https://bitcointalk.org/index.php?action=profile;u=72118
UID of the CTO https://bitcointalk.org/index.php?action=profile;u=66510
According to his reply on my previous thread, he seems to have no connection with the hack; https://bitcointalk.org/index.php?topic=3310743.msg34568316#msg34568316
If you aren't going to answer HOW & WHEN then those are just shallow promises.The website isn't accessible at all, with no ETA.

Bitcoin already has a bad name in India, this will only make things worse.
I am expecting 3000+ user's with active balance, who are stuck with their money.Majority of the user's are neophytes.So, probably most of them are unaware of bitcointalk.

Any exchange "hack" is another chink in the growth of btc... And i still know people that use exchanges as wallets, crazy.

Kind of an ironic name for the exchange now eh.  :-\

This is a serious case and we need answers !Coinsecure is run by the moderator of the Indian Board on Bitcointalk :Benson Samuel (https://bitcointalk.org/index.php?action=profile;u=66510)
Lot of Indian twats had their accounts on the exchange and was the only source of crypto storage for them.I don't know the stats yet but soon I shall find out .
This isn't going to turn out good for Indian crypto market.Watching this thread.

Note that I removed Benson Samuel as moderator, but only because I view the situation as potentially too much of a conflict of interest. I have no reason to doubt Benson Samuel's character.

He probably has his hands full, trying to make sure that the liabilities of the exchange are settled and it is back up and running.
I also do not believe that he would censor criticism (if any) of the exchange.

Pretty sure he wasn't removed from his mod position just for that reason.
We can't be sure whether he was involved or not.What if it was all planned?Until they pay back bitcoins too or the hacker is caught, I won't trust them.

According to the new update, they are only going to let user's withdraw their fiat funds(which was already safe, according to them).

The private keys were held by CSO Amitabh Saxena and the company has filed a case against him, his response to the way in which the funds are hacked are just flimsy and i do not think Benson has anything to do with the loss and the company has ensured that they will be crediting its users, it is a really unfortunate situation and with him being removed as the moderator i hope the local board wont be a junkyard.

I think we need a DT to paint him (https://bitcointalk.org/index.php?action=trust;u=72118), unless he proves it otherwise.


[1] This is the version of the CEO; we haven't heard from Amitabh Saxena yet.

[2] Speculation, it's as good as saying that I believe that even he is complicit.

[3] It's their stated intention; not ensured or guaranteed in any manner. Unless they do so; I have my doubts. Also they just made a strong case against the growth of BTC in a suspicious environment. This is definitely a dent in the mass adoption of cryptos in India.

[4] It already is.

Coinsecure has mentioned that if lost funds found they will refund BTC to users, if lost BTC not found they will refund balance 10% in BTC and 90% in INR at price as of 9th Apr 2018.

Also check https://bitcointalk.org/index.php?topic=3310833.msg34668530#msg34668530 (https://bitcointalk.org/index.php?topic=3310833.msg34668530#msg34668530)

Looks like inside job.

Where have they mentioned what you said? I dont think they have explicitly mentioned that anywhere

https://coinsecure.in/ (https://coinsecure.in/)   Update 3.1: Saturday, 14.4.2018, 6th paragraph on page.
"However, if recovery of siphoned BTC is not possible, then we will apply lock in rates as of 9th of April, 2018. 10% of Coin Holding Balance will be refunded in BTC and 90% will be returned in INR."

It means if you have 1 BTC with coinsecure and if they failed to recover siphoned BTC funds, they will refund you 0.1BTC and 0.9BTC will be calculated at rate of 9th April 2018 and refund in INR = (0.9 x ~400000 = ~360000INR).

It would be a big loss to coinsecure users if BTC price goes up. They have capped BTC price as of 9th April for refund in case siphoned funds not recovered.

All coinsecure users should write to coinsecure that we want all our BTC balances refunded in BTC not in INR at price of 9th April 2018.

This is looks like inside job to steal people money, BTC funds siphoned to address '1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA' were being sent to other addresses till 13th April, after then no BTC sent out of that address. There is still 139.42094629 BTC balance showing in wallet address '1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA' check here https://blockchain.info/address/1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA (https://blockchain.info/address/1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA) .

For BTG fork only needed private keys of wallets had BTC at the time of fork, there was no necessity to keep BTC in the wallet and insert private keys for fork coins,

Why Dr Amitabh Saxena did not withdraw BTC to another wallet for safety before inserting private keys for BTG fork?

Why BTC withdrawals stopped from hacker wallet address  '1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA' after 13 April 2018?

I have contacted Coinsecure support via phone call and sent an email to support@coinsecure.in with my search report that shows clearly where lost funds are going to, most of lost BTC sent to BitcoinFog wallet addresses, P2SH addresses (starts with '3') and Bech32 (starts with 'bc1'), BitcoinFog using tor network so difficult to identify user but user can be traced if investigated deeply, even hacker can be tracked by monitoring end wallet address user is using reputed web wallet or BTC exchange.

This is possibly inside job or lack of knowledge to get BTG fork free coins caused this. Whatever it caused we CoinSecure users should demand refund of our BTC balance in BTC not in INR at the rate of 9th April 2018.

Yup, it will be and the price is indeed going up.It was 6700$ on 9th and today it reached 8500.
A huge difference of 1800$.
If it was all planned then yea, they will easily make a lot of profit by doing this.And they will save their name too.

Yup, sounds pretty stupid to claim BTG from an active address.And that too 438 bitcoins.Sounds like a pretty bad excuse.or might be pure dumbness.No idea.

Don't be so sure that it isn't outright incompetence/ignorance. You have absolutely no idea how inefficient and insecure the setups are, even of the top exchanges such as Coinbase. This is especially the case with exchanges that list half-centralized and bloated chains such as ETH (generating several million deposit addresses using Core is relatively easy, ETH you can't even sync without fast-sync within reasonable time let alone do something else).

That should be a common sense thing, but it ain't. Plenty of people did it that way.

---

When you got your degree for 5 bucks in some dodgy alley. ::)

Dr. Amitabh Saxena was appointed as Coinsecure CSO in Sept, 2017.

Dr. Amitabh Saxena has immense experience including a stint as a professor of Computer Science in Australia for several years. He has also worked with giants such as Hewlett Packard and Accenture.

https://www.cryptoninjas.net/2017/09/24/dr-amitabh-saxena-appointed-c-s-o-bitcoin-exchange-coinsecure/ (https://www.cryptoninjas.net/2017/09/24/dr-amitabh-saxena-appointed-c-s-o-bitcoin-exchange-coinsecure/).

How is it possible that such experienced person can make mistake like this while dealing with 438.31BTC which is worth about $3.8million?

9th April, 2018 - Coinsecure update on webpage says 438.31859715 BTC siphoned out to BTC Address 1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA between 12:35 AM IST - 06:29 AM IST.
In fact 438.31859715 BTC was moved to above mentioned address between 2018-04-08 19:05:07 - 2018-04-09 00:40:50, please verify here https://blockchain.info/address/1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA (https://blockchain.info/address/1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA) .

Some of Coinsecure's lost BTC funds are currently in addresses below.

1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA  139.42094629 BTC

1EL6w4XM7MVXJocdKbUprQszDkV87EQHeZ    9.44412409 BTC

3QmzSdCoPNQqpFmyyDFpMqWiTdLFrvLXfx    1.10477778 BTC

38GGuZBJD23uav4o2Urzqo3ZNkKUjr5xx3   12.49789000 BTC

19984XPvZux8bEdW4SBPmknevWZauamCnG   65.17902000 BTC

38RKQE1Mx9cmhB5j1xbMhmJLudANouWD5C    6.62085686 BTC

Coinsecure update-2 Friday, 13.04.2018 stating BTC funds siphoned, complaint reported to cyber cell Delhi and they are working with invetigation authorities.

No BTC funds are transfered out of address 1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA after 2018-04-13 08:46:22.

Why Coinsecure don't updates more details about exactly what happened?
Was this happened before insertion of private key or after insertion?
What wallet was used for BTG fork coins?  

Update 16-04-2018:-

Today 139.42094629 BTC also moved out from 1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA  to P2SH Bitcoin addresses.

Above address 1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA  balance shows 0 BTC now.

This is really an unfair move on the part of Coinsecure. If the exchange goes bust, then people might be happy to get back some money, in whatever form. If it continues operations, then the customers should be refunded fully. You cannot have a situation where the promoters make money and the customers absorb a portion of the loss.

The person who removed him from charge himself said he was removed because of conflict of interest. You want to question that statement?

Also, anyone who's known Benson knows what kind of a man he is, he is as square as they come and it's not only me but many in the Indian community feel that way about him, because he has helped nurture the community into what it is today.

This is confirmed inside job and whole Coinsecure Team is seems involved in it. And they reading this thread too.

In my preivious post in this thread i stated BTC addresses where stolen funds are lying and today they moved BTC funds to other P2SH wallets.

This clears that this job is done by CoinSecure member or entire team. If it was a hacker from outside he/she would never try to send BTC out of those addresses i mentioned above.

They never transferred out any BTC from address 1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA  after 13-04-2018, but today they transferred all 139+ BTC out to P2SH wallet address.

Hacker is insider and reading this forum as well, i think.

So by that definition, anyone who is reading this post works for Coinsecure? Or do you imply that the hackers don't have access to this forum? And you really think that a group of people who were conniving enough to syphon 430+ btc would be spending their time reading your posts? They probably had this planned all along.

It is definitely an inside job, I just can't believe that the entire team is involved. Definitely not Benson. And rest assured, he himself has enough coins to refund this 430+ BTC in its entirety. But that's his personal asset, I am not sure if he'll fund this refund out of his own pocket just because he's the co-founder. Or maybe he should, not only him, but all the founding members should pitch in to refund the customers.

Who can believe that a computer scientist with over 20 years of experience, worked for computer giant like 'hp' can expose private keys of 438+ BTC for fork coins without moving BTC funds to other wallets?
Does Mr Benson believe this?
There was no necessity to insert private keys of active BTC wallet for BTG fork, even if it was necessary to insert private key of active wallet for fork coins, a cryptonoob would also start with small amount at first.
I am not crypto expert nor computer geek, still this story is unacceptable to me.

The good news is that they are atleast going to refund the money in rupees which I suppose would be a great relief for their customers. They are also giving a bounty of 10% of the hacked funds, if someone is able to recover the hacker money. Hope the police are doing a deep background check on the employees and the owners of this company to identify who stole the money.

Exactly. Its good to see Coinsecure taking this on them to assure a refund unlike other hacks for example 'Shitgrail' where the main guy from the exchange started blaming the developers and problem with nodes.

And to the people demanding a full refund in BTC, I am sorry for your loss. But be happy you are getting at least your money back.

Please read OP .
They promise to refund, 10% in BTC and 90% in INR at rate of 9th April 2018.
As you can see BTC price is up over 25% from price of 9th April. Who will pay loss >25% on 90% of users BTC held at Coinsecure.
Like i have about 0.1BTC with coinsecure from the time BTC/INR price was >1000000, my investment ~100000 INR, i was waiting for my price 1000000INR, now if siphoned funds not recovered i will be paid back 0.01BTC and <36000 INR for rest 0.09BTC, so it would be >50% loss to me.
There must be other users bought tens BTC at price >1300000, what will be their loss and who will pay it.

hmm, 25% to 50% loss, good relief!

In case, u r not aware, forum moderation is neglected by Benson Samuel for a long time - https://bitcointalk.org/index.php?topic=3125174.0.

Latest search of Coinsecure's so called hacked BTC.

16th April 2018

32.19872649 BTC sent from wallet 1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA to 1FWJ7Jp3Xb67SPkmU6vxPaU1gswJazGXnT

https://blockchain.info/address/1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA

Above 32+ BTC finally arrived in wallet address 1FWJ7Jp3Xb67SPkmU6vxPaU1gswJazGXnT via bech32 P2WPKH wallet addresses.

From https://blockchain.info/address/1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA to

https://blockchain.info/address/3PQeKBeqAL6wgQBxycyHPTbQLdK9R8aFQv to

https://www.blockonomics.co/#/search?q=bc1qkcsq23fwr0xu25yzjcawevquw9em5pm7cp2vqs to

https://www.blockonomics.co/#/search?q=bc1qte9ymjj8jtxwwxqwgqvuk5g6w09uwgn3gaxk7w to

https://www.blockonomics.co/#/search?q=bc1qzcx0g43wuzh0x40wdkxz9h0nfle3fqtmu98rck to

https://www.blockonomics.co/#/search?q=bc1q06qm4zy4jxqzte2lgstsef2fj73n9scxh94ah4 to

https://www.blockonomics.co/#/search?q=bc1q3zhluhfe3qeenkdw8rmmnfeqpuzg6q2jmykhvm to

https://www.blockonomics.co/#/search?q=bc1qghlu84gs540t6etd30j95f44yrnqdgwnqptegp to

https://www.blockonomics.co/#/search?q=1FWJ7Jp3Xb67SPkmU6vxPaU1gswJazGXnT 

I'm sure those coins were mixed by a mixer service, tracking it won't lead to anywhere  :-[

Props to their decision to refund partially their customer's BTC, but I'll believe it when I see it, for now those are just promises to do a refund :).
Question is, if they decided to continue operating will people keep using their exchange or move to another one?

Even I agree with OP, theymos might have given a different reason.But his intentions were clear.Theymos was trying to be polite and just at the same time.As expected from the admin.
Wut wut?He nurtured the community?Don't make me laugh bro.The community grew because of bitcoin(and its beauty)and not because of some 40 Y/O man who used to write some blogs which no one used to read and opens an exchange with no security over the funds(even though they named it coin*secure*).


We can't be sure about this.Maybe.Maybe not.
Don't let opinion overshadow the facts.Right now there is nothing to prove Benson's(and other members) innocence.And I am afraid that they can never prove it.

By looking at the increase in price, they should drop the idea of refunding 90% in fiat at locked price.Makes them look guilty.

Only 438 BTC taken in this attack, eh? We've seen worse. I can already hear TheButterZone waking up in a cold-sweat, screaming himself awake in the dead of night over this kind of thing. This is specifically why people tell users to avoid using exchanges at all, but especially to use them as trusted storage. Lauda said it, these exchanges are not set up in any organized or qualified manner and it often is luck not competence that provoked a particular exchange to the peak of popularity. Once these exchanges become popular and have large holdings of Bitcoin these failures become exploited viciously.

It seems promising that there is every sign that the funds will be returned to their owners with the exception of only losing whatever trade profit they could have earned during the time of investigation.

Good call to remove the moderator, even if it is only a temporary measure, because this is a dicey situation that needs to be tread upon lightly.

The name is Coin"Secure", but they have failed to "Secure" their user's funds.
It will be appropriate to say that someone from the inside is involved with the hack, other than this, it is very hard to hack an exchange imo.
And it is really not a good incident for the Indian community. The government may add more restrictions if the users file a lawsuit against CoinSecure.

All users who have their BTC with coinsecure should write to coinsecure that they want their BTC balance refunded fully in BTC not in INR.

If they don't agree to pay full refund in BTC for BTC balance then users should file fraud case against CoinSecure. Grahak Suraksha, Consumer Courts are also there to fight fraudsters with no fees.

I am a user of CoinSecure since 2016 and i visit CoinSecure regularly, I have noticed that CoinSecure's trade volume constantly dropping from last few months due to BTC price fall and other BTC to INR exchanges opened who provide better support and fast transactions. They were battling to create volume and they were also delaying in Fiat withdrawals.

This is not a hack, possibly whole story is a stunt to profit out by refunding in INR at low price and relief of $3.6 million in taxes. 438BTC are gone nowhere, they are by them and once investigation is over these funds will be exchanged. $3.6m so called loss for CoiSecure maybe profit of millions of dollars.

Indian government should take strong actions agaist CoinSecure and Cyber Cell should investigate hard and expose this scam.

Why used BTC active address for BTG fork coins, why not moved funds to other wallet first?

Gave 6 hours time to hacker for transferring funds to hackers BTC address?

Mr Computer Scientist called CEO CTO onto a conference call after each and every BTC was moved to hacker's address?

Or Mr Computer Scientist only knew the funds are stolen soon after all BTC were moved? not even an hour before or an hour later?

What wallet was used for fork?

How the system was compromised to steal keys if no virus found?

This is a matter of ~22crore, can't  polygraph (Lie detector Test) admitted by court if appealed?

CoinSecure guys think lack of crypto knowledge in Indian crypto users will make all users believe whatever story they come up with.

Totally agree with you there ! If it was some random Syrian/Russian hacker who would have emptied all the funds from an exchange,the case would have been different.But this is an internal team fuck-up/inside job which should be taken care by the team members.From what I know,the have way more in profits/Funding from the total bitcoins lost so I don't see any issues with giving customers what they originally own.

What's your point ? Are you implying some more BTC should have taken so it could match the previous records for your satisfaction ? 

It could have been an inside job or at least someone on the inside gave assistance to an outside party. There is a new exchange there called bitindia, but they scammed their applicants by asking the winning voters for several btc to be listed even after winning the voting competition!

It will take years to fight something like this in the court.Hate to say this, but now we don't have any other choice.They are the bully here, we can either take it or leave it.
Unless you have some connections, pull some strings and then you can easily get those guys behind the bars.Ptetty sure one of their customers must be having good connections, hope for someone with connections to get enraged and nail them from their ass.

And after the central banks announcement, they were bound to fail!
They aren't even telling us the whole story, probably they got a notice from the bank or something(how could they not?).They are afraid that if they tell us everything, then their sins will be exposed.

Poor people with no moral values starting exchanges. What else could we expect.

Well, I guess we a need a new mod.Benson, whatever you did for the community(until the hack), we thank you for that.
But after this, it will be really disappointing if he gets back this position.Fucking up with people's money, and then playing a blame game just to prove your innocence without providing any facts.And then keeping the community clueless by going offline.Totally not like a moderator of bitcointalk.

Please read my email conversation with Coinsecure support regarding full refunds of BTC, It's been 2 days now but no further updates from Coinsecure.

-------------------------------------------------------------------------------------------------------------------------

Kavitha (Coinsecure - Support) <support@coinsecure.in>
To:
Zuber Amla

17 Apr at 3:06 PM

##- Please type your reply above this line -##
Your request (79635) has been updated. To add additional comments, reply to this email.

Kavitha   
Kavitha (Secure Bitcoin Traders Pvt. Ltd.)

Apr 17, 3:06 PM IST

Hi,

We will send out further communication on that by tonight. Our team is working with authorities to arrive at the best options for all our users.


Thank you for your understanding.


If you have any other queries please email us at support@coinsecure.in or Call us on +91 98711 15455. (11am - 8pm, Monday – Saturday)

Warm Regards,
Kavitha
Team Coinsecure

Zuber Amla   
Zuber Amla

Apr 17, 1:54 PM IST


Hello,
Funds are lost due to mistake made by your CSO and given hack story is not acceptable also, maybe this is the first Crypto Exchange hack story with such poor excuse.I want my BTC balance refunded in BTC not in INR at price of 9th April, I am holding *.***+ BTC since price was >1000000INR,  Also read users posts on Bitcointalk forum thread https://bitcointalk.org/index.php?topic=3314633.0

Thank You

In case you didn't notice, he's no longer the mod. Also he's having to pay from his own pocket.. well sort of.. company's pocket and since he is the founder this burns him too. Do you have any idea what it feels like when someone fucks with your livelihood and reputation that you have worked so hard to build? Give the man a break! He's supported the community all these years, the least we could do is be patient and give him the benefit of the doubt.

Yea, I know that pretty well.That's why I said "if he gets back this position"
He has all the benefit.I am just sharing my personal opinion about this.

Then he wasn't worth that reputation, imo.Are you still not getting the point?? PEOPLE TRUSTED HIM BECAUSE OF HIS SO CALLED "REPUTATION",AND ALL HE DID WITH IT WAS GIVE ALL OF IT TO ONE GUY!
So who's fault is it? Stop acting dumb.Maybe you should go through the details once again.

- He is not paying from "his pocket".Please get your business economics correct.
- Don't let your personal/emotional attachments refrain you from making wrong conclusions.People trusted them with their valuables and it's totally company's fault that they couldn't take care of it.
- I reckon anyone who is willing to settle for a the money in cash is an absolute idiot ,people should get what they own.Not like the company went bankrupt and they have nothing to give anyone.

He is not my relative that I would be biased emotionally or personally. Generally, it makes sense to refund the customers out of company funds. Being the founder, the funds in his company is also his. True that I am not aware how they are funding the refund, but at least they are doing it. Owning up to a mistake. That's way more than what some other companies did. (remember Gox?)

- Being the founder the funds in his company are not his! You might be aware,the company raised a million bucks from the investors who will be active stake holders too.Pretty sure whatever will be paid would be out the company's stagnant funds and not out of anybody's pockets.Like I said you need you get your business basics correct.

- They're not giving what they customers lost.

Instead of advocating about how potent my business knowledge is why don't you find out how the company was funded and how much of personal money Mohit Kalra and Samuel poured into the startup. And they barely raised a few crores in each of their seed funding rounds - both public and private. FYI, 1 crore = $154000

Now my information might be outdated and may be incorrect. But my comment about them funding this out of their own pocket is stemming from a simple fact, Benson's own admission of having poured in a few crores of his own savings into Bitcoin early on.
I'm simply saying that even if the company doesn't have enough funds in their coffer to refund every customer, the founders themselves can fund it all from their own pockets.


Nope, not aware. Care to share the source of this information?

Speaking of Mohit Karla,do you know what's his annual networth ? Trust me whatever loses he is paying "from his own pocket" is not even 0.5% from his total net-worth.

Founders can definitely fund the entire amount from their pockets considering how rich Mohit Karla is.My point is,pay what people actually lost and not just try to look nice by paying something.

I'm not able to find the proper links as this was way back in 206.Here's the link : https://yourstory.com/2016/04/coinsecure-funding/

Until when that happen, then its no point to give hope to when there is none.  Reading their latest update as on the 18th, there is no way its said there on whether they have recovered the amount stolen neither did they give a time line to when the withdrawal will be available. All I see there was just some hiding behind legal connotations and to me its just damage control to ensure that the panic subsidies.

Its unfortunate that people's trust is being betrayed like this by custodians of bitcoin whether its their fault or not, its their responsibility and not this time when the government is just cracking down this will give validity to their actions and would discourage more users especially newcomers the reason not to trust again.

So what do you think I have been hinting at all along?


I thought your point was to be as coy as possible while telling me how puny my business brain is.. No? Okay.


This is news to me. I find it hard to believe that they raised so much money for an Indian exchange, that too, for an exchange that only dealt with Bitcoins initially. Sadly there is no way to authenticate such claims and no one cares enough.
This is one of their public crowd-funding rounds : https://bnktothefuture.com/pitches/coinsecure Even there they did not cross the million mark. And this was when they were well established and quite popular already.
However, since I am not affiliated with them or anything, who knows what's been cooking behind the closed doors.

According to their new update they are just going to take more time to refund the user's.
This process is gonna take more than at least 3 months for sure.And they will blame it on the authorities for being slow.

No reply from Benson on this forum either, looks like they just want to play with time and are waiting for the storm to go away.

Anyways, those shitheads have already destroyed the image of bitcoins and only a fool will support them.

If the image of Bitcoin could be destroyed by a crappy exchange BTC would be really dead by now.
We survived two Gox (es?), Bitcoinica, Bitswamp, Bitfinex, BItfloor...there is room for more.



According to this
https://cryptocoincharts.info/markets/show/coinsecure
they weren't making more than 20 BTC volume a day, even if we consider a 5% fee (!!!!), they have been making less than 1BTC a day, those 438 coins are more than a year worth of income.
And how many are going to come back ?

This might be an exit scam plan of coinsecure to get away with clean hands.

This hack story is proven to be a fake hack story.

This is maybe the first bitcoin hack story in crypto history with such poor excuse.

Any experienced CSO would never use private key of active BTC wallet for fork coins in first place.

Even if it is necessity of active BTC wallet private key to be inserted, nobody will insert all keys at once rather start with a key of wallet which has a small amount of BTC.

According to their update and blockchain details hacker took 6:30hrs to transfer BTC to his address and CSO called CEO and others onto conference call soon after all BTC were transferred.

Was CSO waiting for hacker to take all funds away before informing to CEO and others?

If he knew BTCs are being sent to unknown addresses, why didn't he inserted keys of the rest of BTC into other wallet and moved coins out of stolen keys wallets to save whatever BTC he could?

If he only knew this hack after all funds transferred, did he knew it only soon after all funds were stolen? not even one hour before all funds transferred nor an hour later?

139BTC were lying in so called hacker's first wallet for over 6 days, anyone heard before that hacked coins kept in first address of hacker for more than few hours?

What is the proof they have that stolen BTC funds are users funds not their personal funds?

438BTC was total BTC funds of coinsecure users balance?

If they want to refund to users why not in few days, why taking weeks?

90% of BTC balance in INR at rate of 9th April and 10% in BTC, Is this a joke?

Are they aware of how much user will lose if they refund this way and who will use Coinsecure.in after this?

Do you think this decision of this type of refund is wise, does it look like they interested in restart crypto exchange business again?

This is looks like exit scam of Coinsecure, users should file complaint against Coinsecure at local police and Cyber Crime Control authority of India.

All Coinsecure users should take action before they execute their exit scam plan and get away with clean hands.



 

Hi guys,

I'm one of the Coinsecure shareholders. I own 2.345% of 10% of Coinsecure shares that were offered to investors in 2017 through BnkToTheFuture.

I'm as frustrated as many of you that the funds have not yet been repaid to the users, but I understand that this things take time, especially while official investigation is underway and a lot of things can't be disclosed.

I just want to say that Coinsecure can also pursue the option to sell more equity. Personally, with assurance from the founders that Coinsecure will again open for business, I'd be willing to increase my current stake at least 5 times. While this is still not a huge amount of money, I'm pretty sure other investors would be interested in this arrangement as well.

However, when I asked this on investors forum, I was told that Coinsecure is not looking to sell more equity and that users will be compensated by directors' personal funds. My offer still stands though should they change their mind.

Cash balance (fiat) held with bitcoin was not impacted by the alleged theft.

• What is preventing CoinSecure to let customers withdraw the Cash balance as they could before the alleged theft?
• Why is CoinSecure requesting documents if the customer account is already verified?
• What will happen if after CoinSecure settles with all customers, and then "magically" they are able to recover 438 Bitcoins? Will they give option to customers to reverse INR settlement and get Bitcoin back?
• Is there a deadline for customers to settle?

There is literally no cash right ? Why would you think the cash wasn't affected ?

1.So you are saying more money is stuck in the exchange or it's just you ?
2.This is sick.Please elaborate and explain the case in detail.
3.They should be giving the bitcoin lost at it's value during the hack to all it's customers.
4.Not that I'm aware of.

Customers had bitcoin balance and cash in their coinsecure account. Cash would have come from either a recent sale of bitcoin that they were yet to withdraw to their bank account or from money deposited to buy bitcoin in future.

Coinsecure has mentioned that only bitcoin were stolen and they have not mentioned anything about the cash balance.

Before this theft, users could withdraw the cash without giving any ID verification documents. My question is why users cannot withdraw the cash now in a similar manner without providing ID documents?

For further details, refer to settlement agreement posted by coinsecure.

They are asking for too many documents without mentioning why they need it and for how long they will keep it. They want users to take INR equivalent of their bitcoin holding (with coinsecure) at price of 9th Apr. They want users to waive off any and all future claims, so if after settlement coinsecure is able to recover bitcoin, then they are not liable to give back to users as they have already settled at a rate decided by coinsecure.

This is very interesting. If the Company manages to raise more equity and compensates all customers in full (in Bitcoin and not in INR), they can reopen for business very easily. They still have to solve the problem of how to manage running an exchange without having any banking exchanges.

https://thenextweb.com/hardfork/2018/05/18/coinsecure-cryptocurrency-theft-refund/



From Coinsecure part, this is one damn f brilliant move!!!
I'm guessing at least half of the customers will just take the loss and be done with, rather than getting in trouble with the tax department for a few $.
And also they are taking the value from April 9th, which is way below 7000$, a small MtGox copycat....

A nice way to not pay people thereby what we  can conclude as 'stealing from the innocents'.Here's what I learned from the case, first you let your team mate fuck up some shit and then fuck up your customers to make up for it.

I wonder why does Indian Government need all the documents when bitcoin is not even considered as a currency in India ? Does anybody have a feeling that they could bribe the cops to make a clear way out from the complaints they will have from the customers who suffered a potential loss ?

What make you think it is actually the government the one that is demanding those tax returns?

Now, I must first state that I speak knowing how the system works in my country (part of the EU) so there might be a difference to India but..

How can an exchange ask for your tax returns? That would be against the law as that is private financial information, they would have to be authorized by the government to ask this and they would not be able to process this information by themselves, they would have to collaborate with the Financial Minister or whoever assumes the role of the IRS there.

Second, why submitting the tax returns when exchanges that follow KYC and AML laws are already forced by the government to store and report all the fiat transactions that are happening on their exchange?

Nobody but a judge or a trustee could ask for those (see the case of MtGox) and only if there is any doubt about the legality of the funds found (alt lost lates) on that exchange.

This smells  of total bs, it's just a way to scare away people that want to fill claims for the missing coins.
Alongside with all the FUD that goes right now in India about the police hunting down traders, it's a clever way to make sure only a tiny fractions of claims will be filled, those exceeding thousands of dollars maybe.
Those guys will get a few bucks, and everything will be forgotten as I doubt people with a hundred $ worth of coins trapped in coinsecure can afford a lawyer and the lengthy process that will probably cost them twice as much.

It is not the Government which is asking for the income tax returns, it is Coinsecure. The government already has your tax returns - you file it with them.  ;D
It does seem baffling to me. I haven't seen anybody from Coinsecure making a statement on this so far.

I haven't seen anybody making a statement about it on bitcointalk either especially when one of their founders was a Staff on bitcointalk. Also this could be a major breach of privacy if a third party organisation is asking for something as confidential as someone's income tax returns.This doesn't sound very professional or a well thought escape plan.

In case anybody here has a coinsecure account:
https://claims.coinsecure.in/doLogin

The info about the tax returns I've got it from here:
https://thenextweb.com/hardfork/2018/05/18/coinsecure-cryptocurrency-theft-refund/

https://i.imgur.com/6LsajKC.png

I'm just taking info from a 3rd source, so it might be true or completely false but we already have somebody claiming the same here on bitcointalk (https://bitcointalk.org/index.php?topic=3850267.0)

Clearly they are asking for tax returns to brush off most of the user's(who don't pay taxes).A very cheap move by coinsecure to save their funds.
People lost their money because of them.Now they are being the bully, and asking for tax returns & ordering people to be "on time" if they want to receive their funds.
They should be sued, for being such a prick.

 I submitted required documents for refund 19 days ago, I also confirmed via support email that they received documents and it's verified and i was told i will receive fund within 10-15 days, no fund received yet. Finally when i contacted to their phone support and they said that they ran out of funds and waiting for more funds, once they get funds they will process 10-15 transactions per day so i will receive funds after 2-3 weeks.

 I bet if BTC price goes under 400K INR, they will announce they have recovered lost BTC and refund will be made in BTC.

 Such poor hack story, then self attested documents for refund process and now delay in refund, soon new announcement they will refund in BTC.

 This drama is going on for over 2 months, donno when it will end?

 I think one should report this thru a good lawyer to request authorities to seize their all assets.

Hmm,  they've said:

So at this point, it does make sense to refund in BTC, but this only if they DO have the bitcoins or the funds to buy new ones. Which I do doubt.



Is there anybody that has received a refund till now?
I checked 3 threads about coinsecure and there is no proof of a happy ending.


I wonder where those funds can come from....
And more interesting, the exchange is down, right? How are they still making money or how do they plan on doing in the future?

They've said that the founders are covering refund expenses from their personal funds. As for the future operations, that's what I'm interested in as well.

This could be the real good if the directors are ready to pay from tier pocket but how much will they be able to pay it as the stolen amount runs in 400 btc+ and your idea of selling more equity could be a good plan with things start rolling quickly and people receive their money.

Guyz, BTC under 400K INR now, we have signed refund documents to receive refunds of BTC at price 438K INR per BTC.

I have submitted refund documents long ago no refund is received yet.

Most interesting thing now is, are they gonna still refund BTC balance in INR at 438K INR price or they will change refund policy to refunding in BTC or they come up with new story that lost BTC are recovered?

I am so excited to hear from CoinSecure, they are caught in their own trap now.

In last conversation with CoinSecure Team I was told that they gonna pay refund by check because e-transfer is no more available by bank for them. While all other Indian crypto exchanges send funds in minutes after withdrawal request via IMPS without any issue.

Let's see what next they announce.

Recently received email from CoinSecure as following.

------------------------------------------------------------
Dear Users
 
We are happy to inform you that we have started the process of compensating our customers in Indian Rupees, ex gratia, for the loss of their Bitcoins in the attack that occurred on April 9, 2018. Users will be required to sign an agreement releasing Coinsecure of any future liability and provide certain other documents in order to receive the payment. The Agreement can be downloaded from our website. This agreement will have to be duly signed and delivered to our office along with the documents mentioned in the Agreement before June 30, 2018.
Please note that the last date for submitting claims to us along with all appropriate documents is June 30, 2018. 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.
 
Thanks
Team Coinsecure
------------------------------------------------------------

LOL, they call it ex gratia payment, their own CSO Mr Amitabh Saxena who made such childish mistake and lost our BTC or maybe scammed, and now when time to payback money to owner of hosted BTC they call it ex gratia payment. They also mentioned other documents to be submitted along with documents submitted earlier for claim of refund before 30 JUNE.

They informed this via email today on 26th JUNE, If they really want more documents from user for refund purpose then users have to submit more documents within 4 days or no refund thereafter, on claims.coinsecure.in there are no other printable agreement documents are available to download besides previous printable refund agreement documents.

I think it's time to drag them to the court and claim full refund plus compensation and all the other costs.

Anyone here has received refund so far?

The good thing they do consider on having a reimbursement of compensation for those users who are being affected on those hack but the said due date was too short and we are now June 26,2018 and its 4 days more for the due date to come.
The thing that concerns me into those users who arent based on India or same country and do lost up big amounts of bitcoin then how he would able to make such claim?

You can drag Benson's Ass to the court room. Anyway, it isn't going to help. They would have already bribed the cops, cyber crime officials and everyone who opens their mouths against them. You know how it works in India. You can easily get away with Child Rape/Murder/Bank Robbery if you can bribe the cops. This is just a mere 'bitcoin theft', I'm sure Benson would have handled it professionally with Mohit. Only an idiot will continue using them or any other Indian exchanges.

???


Spoke to CoinSecure support executive over the phone call regarding refund. I was told that there is no need of submitting of additional documents if previously mentioned refund agreement documents are submitted. I was told it will take about 30 days to get refunds, they will deposit checks to users bank accounts to the users who have submitted self attested refund agreement documents before deadline.

I also asked about re-start of this exchange after refunds done, and he said they are not certain about restart of this exchange and it also relies on supreme court and RBI decision about Bitcoin/Altcoin on 6 JUL 2018.

As we can see other crypto exchanges are running and payments via banks are being smoothly without any issues. Also the major countries like USA, CAN, UK, FRA, AUS, NZL, JPN, RUS and others has accepted Bitcoin as legal tender or commodity, some countries like RSA, MAL, BRAZIL etc looking forward to legalize Bitcoin into their countries and the other fact is that Bitcoin/Altcoin networks are impossible to terminate, it's just matter of p2p file transfer, so banning of BTC/ALT is useless and perhaps that is the reason above countries legalized cryptos with certain rules to regulate it and taxation on it. Country bans BTC/ALT is likely to go behind in economical race because crypto markets are turned so huge and it may impact on country's economy if banned. Like China banned cryptos in their country and all crypto exchanges and crypto giants fled outside of china and re-established their business.

If cryptos are banned in India, only small investors like us will have problems, exchanges and giants will make their way outside India.

This is a beginning of Digital Era, crypto lovers might face issues currently but sooner or later cryptos will be full flagged worldwide.

CoinSecure users have to wait more to get their money back, hope refunds are made soon.

I was also told by support that over 200 refunds are done already, anyone here got refund?

Tracing down the coins from Co-Insecure hack - https://bitcointalk.org/index.php?topic=5204728.0

Did u finally get your refund? Did anyone else got their refund?
What happened with investigations? Was anyone arrested or held liable by police for the hack?