Coinsecure Not Secure?

[orangetax]

Coinsecure recently had their offline Bitcoin wallets hacked. The hackers have siphoned off with an astounding 438 BTC (worth more than 3 million USD). The news came in just a few days after RBI announced a virtual ban on cryptocurrencies in India.
 

Read the full article here : https://coinfrenzy.io/coinsecure-not-secure/

[pinecone24]

India is probably failing in all aspects of blockchain and cryptocurrencies. Most scams also come from this country only.

[orangetax]

Coinsecure is working hard to restore services and is trying to recover all of the lost funds. I shall update you guys if anything new comes up regarding this.

[whirlcoin]

India is probably failing in all aspects of blockchain and cryptocurrencies. Most scams also come from this country only.

The exchanges are owned by private owners right so what a country can do here,And still cryotocurrency are legal in India only the banks are warned by RBI that stop dealing with cryotocurrency exchanges so the hack are done by hackers so we can't blame government.

[TryNinja]

Coinsecure is working hard to restore services and is trying to recover all of the lost funds. I shall update you guys if anything new comes up regarding this.

There is nothing to recover if the coins are now sitting in an address owned by a third party (if it was really a hack).

After reading the article, this "hack" was IMO an inside job,  since the coins were stored offline and the private keys were only exposed to people working on the exchange (so they could spend the BTG fork coins). This is also one of the reasons why many exchanges don't risk themselves to recover coins sent to the wrong address (i.e BCH to the BTC address).

[Joel_Jantsen]

Coinsecure recently had their offline Bitcoin wallets hacked. The hackers have siphoned off with an astounding 438 BTC (worth more than 3 million USD). The news came in just a few days after RBI announced a virtual ban on cryptocurrencies in India.

You know,80% of the traders on such exchanges are dumb as fuck and have no idea how bitcoin works or what a wallet is.Not to mention but I was added to a telegram group with more than 2000 Indian traders who trade often on platforms like Coinsecure and Zebpay.They were surprised when I asked did you guys updated your core wallets.Most of them had no idea what a bitcoin wallet is and their only source of storing bitcoins was an exchange wallet.I clearly saw this coming.

[13abyknight]

So what basically happened was that the government stepped its game up by terminating bank accounts associated with cryptocurrency exchanges in the country like Zebpay, Unocoin and CoinSecure and many others. While the others were ready to compensate its user base, the founder of CoinSecure is believed to have fled with all of the 438~ BTC that was stored in a non-multisig address (so much for the brand name 'CoinSecure') and the rest of the team is helpless at this point of time.

[krishnapramod]

So what basically happened was that the government stepped its game up by terminating bank accounts associated with cryptocurrency exchanges in the country like Zebpay, Unocoin and CoinSecure and many others. While the others were ready to compensate its user base, the founder of CoinSecure is believed to have fled with all of the 438~ BTC that was stored in a non-multisig address (so much for the brand name 'CoinSecure') and the rest of the team is helpless at this point of time.

He isn't the founder, but CSO of Coinsecure who joined the platform on September 2017.

Dr. Amitabh Saxena has kept a watchful eye on the progress of Coinsecure’s construction of complex and fast algorithms and a reliable platform backbone.

Doc comes with an extremely strong understanding of the crypto space and has a lot of ideas and implementations that he will be bringing to Coinsecure.

http://blog.coinsecure.in/post/165496119420/coinsecure-welcomes-dr-amitabh-saxena-on-board

It does look like an inside job, the timing seems a bit bad for the Indian crypto community. At a time, a few days after RBI's ring-fencing announcement, one of the India's oldest cryptocurrency exchanges getting hacked/inside job was the last thing the community needed.  Apart from bounty, coinsecure has roped in Chainalysis to track the movement, but don't think there is much hope in it and their 10% in BTC and 90% in INR if Bitcoins not recovered refund plan would be unfair to those users who were keeping Bitcoins on an exchange for the long-term, to an extent they have themselves to blame. Hopefully Coinsecure would come out of this mess and resume their services.

[ManaMan]

This is the problem within this space. Many start ups and new companies are seeing the opportunity and thus opt to make business. However they don't value security enough because they often don't find themselves to have money in order to hire professionals/or other companies to make their infrastructure secure. Security should always be their number one on the list. Because when something like this happens you screwed your customers, not on the purpose but it is your fault for not doing things to prevent hacks. Of course you can't secure for all breaches but at least you can get good 95% if done right.

[13abyknight]

He isn't the founder, but CSO of Coinsecure who joined the platform on September 2017.

Dr. Amitabh Saxena has kept a watchful eye on the progress of Coinsecure’s construction of complex and fast algorithms and a reliable platform backbone.

Doc comes with an extremely strong understanding of the crypto space and has a lot of ideas and implementations that he will be bringing to Coinsecure.

Still don't understand how they gave him access to all the funds without any thought rather than considering a multi-sig wallet to keep the funds on. Either ways, I don't see the money coming back any time soon and the police are most likely not going to support investigation because of the current scenario regarding cryptos in the country.

[stomachgrowls]

Coinsecure recently had their offline Bitcoin wallets hacked. The hackers have siphoned off with an astounding 438 BTC (worth more than 3 million USD). The news came in just a few days after RBI announced a virtual ban on cryptocurrencies in India.

You know,80% of the traders on such exchanges are dumb as fuck and have no idea how bitcoin works or what a wallet is.Not to mention but I was added to a telegram group with more than 2000 Indian traders who trade often on platforms like Coinsecure and Zebpay.They were surprised when I asked did you guys updated your core wallets.Most of them had no idea what a bitcoin wallet is and their only source of storing bitcoins was an exchange wallet.I clearly saw this coming.

Im not really keen on knowing their knowledge when it comes to bitcoin or crypto but its quiet surprising that they didnt even know on what is core wallets.They do mainly use exchange wallets to be their main wallet and storing all their funds which it is somehow anticipated that this thing will really happen when it comes to exchange hacks or any private parties.If you are nott sensible enough to secure out your coins then most likely you will end up like them. A very costly lesson learned again and again.

[JanpriX]

An additional information regarding this hack worth looking into is that Coinsecure announced they'll be refunding the hacked amounts in Indian Rupees if they will not be able to get hold of the stolen coins. And according to the details that they are publishing, there's a very little chance of them getting it back (BTC stolen). It will surely fall into the plan of giving an equivalent amount in Indian rupees during the date of hack which will provide significant losses in their customer's part.

Well, people shouldn't use exchange as their main wallet in the first place. They should learn the basic things regarding crypto.

Link to the article: https://www.coindesk.com/coinsecure-may-refund-rupees-not-bitcoin-3-4-million-heist/

[Kemarit]

An additional information regarding this hack worth looking into is that Coinsecure announced they'll be refunding the hacked amounts in Indian Rupees if they will not be able to get hold of the stolen coins. And according to the details that they are publishing, there's a very little chance of them getting it back (BTC stolen). It will surely fall into the plan of giving an equivalent amount in Indian rupees during the date of hack which will provide significant losses in their customer's part.

Well, people shouldn't use exchange as their main wallet in the first place. They should learn the basic things regarding crypto.

Link to the article: https://www.coindesk.com/coinsecure-may-refund-rupees-not-bitcoin-3-4-million-heist/

It will be a good move for them if they are going to refunds all their consumers. But this sort of things can be somewhat avoided if people will really learn from the past mistakes of not storing huge amount of money on a exchanges and its really sad to hear another negative news that can somewhat affect the market and put crypto in the bad light again. There's a lot of explaining to do here and how the hell do Coinsecure, secure the funds in the first place. And that asshole took advantage of the situation stole every bitcoin he can get a hold off and thinking Karma will not follow him.

[CoinManiaOfficial]

An additional information regarding this hack worth looking into is that Coinsecure announced they'll be refunding the hacked amounts in Indian Rupees if they will not be able to get hold of the stolen coins. And according to the details that they are publishing, there's a very little chance of them getting it back (BTC stolen). It will surely fall into the plan of giving an equivalent amount in Indian rupees during the date of hack which will provide significant losses in their customer's part.

Well, people shouldn't use exchange as their main wallet in the first place. They should learn the basic things regarding crypto.

You're right.
I'm agree with the point of storing coins in secure wallet and NEVER on exchange wallets.
Exchange wallets are never secure, we can't sleep peacefully storing our cryptos with them.

One good article I found here which has more details if you would like to go through: http://coinmania.online/coinsecure-india-got-hacked-3-million-worth-bitcoin-missing/

[St4yInTh3D4rk]

As everyone saying people need to understand what is an wallet and exchange if they keep their funds in the exchange the chance of hack is their so we can't blame anyone for happens this.So you need to take care of your hard earned money by saving it in a good wallet normally the hardware wallets are most secure now a days so buy a wallet and keep your fund there when you want to cashout move funds to exchange and sell it there.

[mobnepal]

Actually not only coinsecure, most of the new exchange platform which were popping out everyday without proper security audit are not secure for trading. Don't know why many people keep their coins in pretty new exchange which has never been tested to their extreme.

Also in next few months most of the Indian bitcoin trading platform gonna shutdown because they can't operate fiat pair restricted recently by RBI.