Coinsecure gets hacked after their bank account suspension

[edgycorner]

I got a mail from coinsecure claiming that somebody(lol) stole(XD) their bitcoins.
Seriously coinsecure?
Here, read it:
https://i.imgur.com/can4IDz.png

Is this how you guys are going to roll after your bank account suspension?
If you are going to use this an excuse to hold user's funds, then this isn't going to be a very good news for the indian bitcoin community.
GGWP!
Disappointed.

[deadley]

WTF, they were not using multi sign wallet. This is really big set back. How any company can trust with all their funds with only 1 person.

[Rotten Egg]

FIR copy below...



Is Dr. Amitabh Saxena = https://bitcointalk.org/index.php?action=profile;u=72118 ?

[Benson Samuel]

Am going to try and answer as much as possible..

All INR funds are safe and we will setup a withdrawal form over the next few days.
Indemnification of all users Crypto funds are being discussed, but will be indemnified by company funds even if we fail to recover funds from  this incident.
We are following every procedure possible to make this seamless for our users and we will be posting more frequent updates as we get more information.

We still maintain our banking relationships and have never maintained a fractional system on coinsecure, so, all fiat funds were always safe and withdraw-able.

We will publish more information on this incident as soon as we are able to get more information from formal and informal investigative companies.

Coinsecure is not shutting down. We are going to work our way through this and defend this technology that we have lived and breathed for.

I will try as much to answer any questions, but will have delays as we are all sunk into this compromise.

[Benson Samuel]

FIR copy below...

Is Dr. Amitabh Saxena = https://bitcointalk.org/index.php?action=profile;u=72118 ?

Yup, this is most likely docs id.

[Blackshadow007]

This is terrific news , as far i knew CS one of the trusted among the Indian BTC Community and i hope Benson make sure that status stays .. :/

[amishmanish]

All INR funds are safe and we will setup a withdrawal form over the next few days.
Indemnification of all users Crypto funds are being discussed, but will be indemnified by company funds even if we fail to recover funds from  this incident.

It looks like the keys were with Amit Kalra as well as Amitabh Saxena. Amitabh must have been trusted enough to have all the keys at one place even if it was a multi-sig wallet.

We are following every procedure possible to make this seamless for our users and we will be posting more frequent updates as we get more information.

We still maintain our banking relationships and have never maintained a fractional system on coinsecure, so, all fiat funds were always safe and withdraw-able.

The explanations regarding fiat or fractional reserves should be comforting for those who would fear that coinsecure too will shutdown like the other scams going around.

Coinsecure is not shutting down. We are going to work our way through this and defend this technology that we have lived and breathed for.

I will try as much to answer any questions, but will have delays as we are all sunk into this compromise.

You guys are among the first adopters in India. This incident confirms again that having your funds on an exchange is still not a good idea. The sincerity not withstanding, the lack of professionalism that resulted in this is still worrisome. Frankly, we'd expect better from someone who has cut his teeth on the forum through the initial years.

The decision to indemnify crypto funds, if taken, would be a landmark for coinsecure. It'll take a lot of heart and I think is the only way you can win back trust of the community and really mean those words when you say "defend this technology that we have lived and breathed for".

If the users are left to fend for themselves, then these will just be hollow politician words that we in India, nowadays, are finding it ever so easy to throw at each other.

Some questions:
Can you provide any details about how the keys were being stored?
How long has Amitabh been out of touch with coinsecure now?

[remedcu]

I earlier used Unocoin, but due to better service I moved to Coinsecure. And since last few years I have been using coinsecure only.

That being said, every time I had a trouble, it was solved within 1 or 2 day at max, unless it was a holiday. So, I still believe in Coinsecure.

Though, giving main private key (or all the private key of a multi sig) to a single person was a foolish idea though.

Anyways, it was a nice move to ask to seize his passport, so that he does not leave the country.

I hope these things get's solved as soon as possible and coinsecure returns to it's former glory.

[cuddaloreappu]

The very news that your offline storage unencrypted in the hands of a person itself is a big problem.

you must have had a technology with encrypts everything, its like kids handling stuff

[Hssn]

Thats why we never should hold our coins in shitty exchange be your own boss buy a ledzer and store all crypto there.

[achris]

Can you suggest some wallets where we can hold the private keys with us ?
Other than the physical/hardware wallets - Where I can move around/transfer the bitcoins fasters  ?

After the coinsecure incident , I have become more paranoid about the holdings.

Thats why we never should hold our coins in shitty exchange be your own boss buy a ledzer and store all crypto there.

[Guvn0r]

Very disappointing to see this after major setback caused by RBI. All we can hope to do is to watch the address to which all the BTC was transferred and see if it gets cashed out from any major exchanges. Even then I see very little chance of users getting their coins back.

Hard to believe that someone would lose 19 crore worth crypto by trying to extract BTG. nobody in their right mind would take such a thing lightly and do it. But, lets not jump to any conclusions right now and see how coinsecure deals with this situation.. I really hope people get their coins back.

Can you suggest some wallets where we can hold the private keys with us ?
Other than the physical/hardware wallets - Where I can move around/transfer the bitcoins fasters  ?

After the coinsecure incident , I have become more paranoid about the holdings.

You can install electrum if you don't want to deal with the trouble of running a full node on your pc or laptop. But, remember to keep the pc away from any kind of exposure to hackers. Our ISPs do very little to take care of security, it all depends how secure (no pun intended) you keep your wallet.

[achris]

Cool thanks for the info.

You can install electrum if you don't want to deal with the trouble of running a full node on your pc or laptop. But, remember to keep the pc away from any kind of exposure to hackers. Our ISPs do very little to take care of security, it all depends how secure (no pun intended) you keep your wallet.

[RocketSingh]

Cool thanks for the info.

You can install electrum if you don't want to deal with the trouble of running a full node on your pc or laptop. But, remember to keep the pc away from any kind of exposure to hackers. Our ISPs do very little to take care of security, it all depends how secure (no pun intended) you keep your wallet.

If u are just HODLing and dont want to trade everyday, I'd suggest Paper Wallet. Run https://www.bitaddress.org offline and write down the private keys on paper. Only have the bitcoin addresses in your computer and transfer all your funds over there.

[Real14Hero]

I am shocked but not surprised.After the ban I was discussing with my friend about how exchanges will get hacked now haha
But we can't be sure of anything yet.Maybe this is real, maybe not.
Either way, all that matters is wheter they are going to pay back its user's or not.Gonna keep an eye on this thread and see whats gonna happen now.
Good luck benson, FIGHTO!

[Marma Kalari]

Coinsecure is not shutting down. We are going to work our way through this and defend this technology that we have lived and breathed for.

This is a really unfortunate situation and the company is filing a case against one of the owner, i would like to see this exchange in the future as this is my favorite exchange and when can we expect to see coinsecure back in action.

I am shocked but not surprised.After the ban I was discussing with my friend about how exchanges will get hacked now haha

The reason for the hack is the funny bit though,  Amitabh Saxena who holds the private keys was trying to distribute bitcoin gold for the users and somehow they got attacked. No wonder the team has filed a complaint against the owner.

[polynesia]

We still maintain our banking relationships and have never maintained a fractional system on coinsecure, so, all fiat funds were always safe and withdraw-able.

Are you sure that allowing for withdrawal of fiat funds is the right approach to be followed?

Sorry to bring up an extreme scenario - but what happens in the case of a liquidation? All creditors of Coinsecure (i.e. customers) should have equal access to the left over assets. It shouldn't matter whether customers have stored assets in the form of bitcoins or fiat, and what is the form of assets which have been stolen.

The above approach is what has been followed in the case of other hacks - including Bitfinex.

If Coinsecure is able to absorb the loss, then the approach followed really does not matter.

[alyssa85]

Here is the latest on this story:

https://news.bitcoin.com/coinsecure-announces-repayment-plan-bounty-stolen-bitcoins/

Indian exchange Coinsecure has announced its plan to repay customers for stolen bitcoins as well as a 10 percent bounty to anyone who helps recover them. The exchange claims it was an inside job, and suspects its chief security officer of playing a role in siphoning off the money.

Coinsecure revealed that the address where stolen bitcoins were transferred to is 1BaEJquitskdXcTj53Uy6PuUtJ5a8ETWpA. At the time of this writing, there have been 973 transactions through this address and the final balance is 139.42094629 BTC.

The stolen coins were “transferred to the hacker’s wallet over a span of two days in small tranches” and then sent to multiple addresses, the news outlet described, noting: The exchange claims an insider job in the theft and suspects its chief security officer, Amitabh Saxena, of playing a role in siphoning off the money. Coinsecure also requested Delhi police to seize Saxena’s passport, fearing that he may leave the country.

The police are currently investigating the case. The exchange has filed a theft report with the Delhi Cyber Crime Cell under Section 66 of the IPC and the IT Act. According to News18, “the company’s servers have been seized to get information about [the] hack…Many senior officials of the company have [also] been called for questioning.”

[The_Don1]

may be this hack is real because transfers are in small amounts .. seems like attacked

[zuber_amla]

Read here https://bitcointalk.org/index.php?topic=3314633.0