[2018-04-15] Coinsecure Announces Repayment Plan and Bounty for Stolen Bitcoins

[limek]

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.

A 10 Percent Bounty

Coinsecure has announced a bounty of approximately 20 million rupees, worth approximately US$306,722 at press time, “to anyone who helps them recover the lost bitcoins,” the Economic Times reported on Saturday.

The exchange confirmed that it lost 438.31859715 BTC on April 8, worth approximately Rs 20 crore or US$3,067,220. The coins were stolen from an offline wallet holding users’ funds, the news outlet detailed. While the exchange has about 2 million users, “Some 11,000 customers are said to be affected by the reported theft which is the biggest cryptocurrency theft in India,” the publication added. The exchange subsequently halted all deposits and withdrawals.

A statement was issued by the company on Friday, clarifying:

       "We are also seeking help from the Bitcoin community and all our users who can help us identify the hacker or give us any information that could lead us to recover funds…We are happy to issue a bounty of 10% to the community for help rendered for [the] recovery of BTC."

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

[1713992196]

1713992196

[jjacob]

I don’t think the bounty is going to work. The money siphoned off has already been split up into many addresses and the trail is being obfuscated. The police will have a better chance by traditional investigations, since this is suspected to be an inside job.

[CryptoBry]

I don’t think the bounty is going to work. The money siphoned off has already been split up into many addresses and the trail is being obfuscated. The police will have a better chance by traditional investigations, since this is suspected to be an inside job.

You can be right. As of now many have become embolden to do this kind of fraud because the blockchain technology has become a good tool for many bad people instead of becoming a firm enemy of them. I am all wishing that soon with the aid of the blockchain technology, a way can be devise to easily catch these scam-minded people instead of them hiding with the help of the blockchain technology. The whole system should be turned around and to go after them so that we can all clean the image of the blockchain and make it scam-free.

[leea-1334]

They surely do not have the expertise to track it on their own but there are some expert firms out there who helped police track down international Bitcoin criminals. It is a lot of money so I am sure some firm will even contact them to say they will help, for a fee of course. but that is better than nothing.

But I still believe their suspicion on the CSO is probably the accurate one. There are only two possibilities to me. Either the CSO did it, or he has crap security and should never have been their security head.

[yndye]

It's good to know that the exchange would pay the coins. If it would be other exchange then it would be considered lost already. I can still remember that Bitfinex has been hacked before and they have repayment plan as well to their users. Storing coins in the exchange is not recommended but there are times when we just have to store the coins there because we don't have to miss a trade and it is expensive to deposit and withdraw from time to time especially if you only have a small amount. We can only hope that the exchange would not be hacked or anyone stealing our coins.