Coinsecure Begins Refunding Customers After $3.3M Bitcoin Theft

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Coinsecure Begins Refunding Customers After $3.3M Bitcoin Theft

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Coinsecure has posted a notice on its website saying that it has begun compensating customers with Indian rupees (INR). Customers have been waiting for a refund since 9 April 2018 when Coinsecure closed due to the loss of 438 Bitcoins worth USD 3.3 million at the time. This is the largest cryptocurrency exchange theft in India’s history.

Coinsecure is only giving customers until 30 June 2018 to submit claims along with other “appropriate documents”; the required documents are not explicitly stated in the public announcement on their website. Team Coinsecure says “We will not entertain any claims received after 30 June 2018 and we shall have no liability towards any users who try to submit claims after the said date”.

This announcement was posted today 26 June 2018, giving customers only five days to submit claims and documents. This has been viewed as rushed and perhaps unfair, and is speculated by some to be an attempt by Coinsecure to improve their situation by writing off the balances of customers that don’t see this notice or aren’t able to prepare required documents in time.

It might not be legal for Coinsecure to not honor claims after 30 June 2018, especially considering the rushed nature of this claims process.

The entire hacking incident was suspicious from the beginning. Coinsecure’s chief security officer Amitabh Saxena allegedly didn’t follow proper protocol when accessing Bitcoin private keys, and all of Coinsecure’s Bitcoins were transferred out to a single wallet address not under its control. Coinsecure says it suspects Saxena directly stole the funds but was not able to prove it.

Originally, Coinsecure was promising to refund all customers with 90% INR and 10% Bitcoin, but now there will be no Bitcoin refunds, which suggests they don’t possess any Bitcoin. Also, now they are going back on their promise to refund all customers and are only refunding customers able to act on this announcement.

This news comes at the same time that customers impacted by the notorious Mt Gox hacking received positive news that they would finally receive refunds in the next year or so.

 

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