Major indian exchange gets hacked, 438 bitcoins stolen COINSECURE

[audaciousbeing]

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.

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.

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[legendster]

..Trust me whatever loses he is paying "from his own pocket" is not even 0.5% from his total net-worth.

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

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

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/

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.

[edgycorner]

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.

[stompix]

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 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.

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 ?

[zuber_amla]

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.

Alert Coinsecure.in Users

This is possibly exit scam plan of Coinsecure.

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.



 

[Domchi]

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.

[bitcoinwala]

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?

[Patatas]

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

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

• 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?

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.

[bitcoinwala]

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.

[botany]

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.

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.

[stompix]

• 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?

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.

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

Given the involvement of authorities, it is particularly interesting that the exchange is requesting physical copies of ‘last filed Income Tax Returns’ along with KYC documents.

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....

[Patatas]

Given the involvement of authorities, it is particularly interesting that the exchange is requesting physical copies of ‘last filed Income Tax Returns’ along with KYC documents.

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.

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....

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 ?

[stompix]

Given the involvement of authorities, it is particularly interesting that the exchange is requesting physical copies of ‘last filed Income Tax Returns’ along with KYC documents.

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.

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....

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.

[botany]

Given the involvement of authorities, it is particularly interesting that the exchange is requesting physical copies of ‘last filed Income Tax Returns’ along with KYC documents.

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.

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....

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 ?

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. 
It does seem baffling to me. I haven't seen anybody from Coinsecure making a statement on this so far.

[Patatas]

Given the involvement of authorities, it is particularly interesting that the exchange is requesting physical copies of ‘last filed Income Tax Returns’ along with KYC documents.

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.

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....

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 ?

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.  
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.

[stompix]

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.  
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 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/



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

[edgycorner]

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.

[zuber_amla]

 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.

[stompix]

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

Hmm,  they've said:

10% in BTC and 90% in INR at rate of 9th April 2018.

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.

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.

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.

Finally when i contacted to their phone support and they said that they ran out of funds and waiting for more funds

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?

[Domchi]

Finally when i contacted to their phone support and they said that they ran out of funds and waiting for more funds

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.