Major indian exchange gets hacked, 438 bitcoins stolen COINSECURE

[Legion13]

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.

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.

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[zuber_amla]

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.

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.

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.

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.

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!

[TigerMart]

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.

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.

[zuber_amla]

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 

[teddy5145]

Latest search of Coinsecure's so called hacked BTC.

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

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.

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?

[Real14Hero]

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

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.

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.

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*).

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....

It is definitely an inside job, I just can't believe that the entire team is involved. Definitely not Benson.

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.

[bill gator]

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.

[akamit]

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.

[zuber_amla]

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.

[Joel_Jantsen]

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.

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.

Only 438 BTC taken in this attack, eh? We've seen worse.

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

[coinwizard_]

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!

[edgycorner]

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.

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.

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.

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.

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!

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

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.

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.

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.

[zuber_amla]

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

[legendster]

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.

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.

[edgycorner]

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.

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.

[Patatas]

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.

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.

- 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.

[legendster]

- 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?)

[Patatas]

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.

[legendster]

 - Being the founder the funds in his company are not his! .....Like I said you need you get your business basics correct...

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.

...You might be aware,the company raised a million bucks from the investors who will be active stake holders too...

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

[Patatas]

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

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.

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.

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.

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

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/