The last few days were not so good for the Indian cryptocurrency users. On 4th April Reserve bank of India came up with a statement that they won’t support services to cryptocurrency exchanges. It created a lot of Fear and confusion among Indian users as people won’t be able to withdraw or deposit money in their favorite crypto currency exchanges.
To make the situation worse today we hear the news of Coinsecure.in getting hacked. Coinsecure is one of the leading cryptocurrency exchnages in India. Coinsecure is an Indian company founded in 2014 by Mohit Kalra and Benson Samuel and is based out in Delhi, India. They are popularly known for their 2 wallet system . It uses a unique feature of ‘Cold Storage’ where a certain portion of your funds are stored like a cold storage and a certain amount is available in a ‘Hot wallet’ for emergency withdrawals.
Today on opening their website we got something which will shock any crypto investor. Yes they got hacked !!
The Full Story
On the homescreen of Coinsecure.in we can see a message by the Team of Coinsecure which explains the entire situation and also they attached the FIR. As of now it is not sure if its a hack or their employee ran away with the money. According to coinsecure their system is not compromised but while extracting BTG to distribute to their customes their private keys got exposed and they ended up sending 438 BTC which is worth 20 crore went to an address which is not in their control. According to coinsecure , their CSO Dr. Amitabh Saxena was extracting BTG and funds were lost in the process during the extraction of the private keys.
Coinsecure have lodged an FIR with cyber cell Delhi . In the FIR they have added their CSO Dr. Amitabh Saxena as the prime suspect. According to them , Dr. Amitabh Saxena is making a false story to divert attention and have a major role in the incident.
They also mentioned in the FIR that Mr. Saxena have Indian passport and he might fly out of the country soon and requested police to seized his passport soon.
Coinsecure has lacs of users and money of all the customers are at risk, but coinsecure said that they will compensate money of all users from their personal funds.
Whats Next ?
Already Indian government is not so much comfortable with cryptocurrency and they have warned users many times about the risk of investing money in it. As this is the first Indian exchange that got hacked , we are are government will soon come up with some more strict regulations are a lot of money is at stake. As of now we are not sure if its a hack or their employee took the bitcoin.
Also for users who are into cryptocurrency, never keep your money in any exchange. you never know when your favorite exchange gets hacked. Always keep your money in a hardware wallet like ledger nano s which is much more secure and safe.