Hacked Crypto Exchange Coinsecure Delays Reimbursement of Funds to Victims

Hacked Crypto Exchange Coinsecure Delays Reimbursement of Funds to Victims

Exchange News
April 30, 2018 by Henrik Bliss
1648
The recently hacked cryptocurrency exchange Coinsecure has announced that the reimbursement of funds to the cyber heist victims will not be happening anytime soon. According to an announcement on its official website on Sunday, the Indian-based exchange stated that it couldn’t start disbursing the compensations as they earlier promised following events that happened after the
Hacked Crypto Exchange Coinsecure Delays Reimbursement of Funds to Victims

The recently hacked cryptocurrency exchange Coinsecure has announced that the reimbursement of funds to the cyber heist victims will not be happening anytime soon.

According to an announcement on its official website on Sunday, the Indian-based exchange stated that it couldn’t start disbursing the compensations as they earlier promised following events that happened after the attack.

“While our last mailer [on April 21] did state that we were hoping to start the disbursement of funds by the end of last week, there has been a delay on that front […] When investigations are underway, we don’t have much of a say and do need permissions from the authorities to start the compensation process, which we are yet to receive. We will update you when we have definite dates around the start of the process,” the statement read.

A cyber-attack on 9th April saw the company lose over $3 million in bitcoin. According to a complaint filed with local authorities, the exchange accused the CSO Dr. Amitabh Saxena of complicity in the theft.

The exchange had promised to replace the lost bitcoins if the stolen BTCs were recovered. If the bitcoins were not found, Coinsecure promised to repay the victims in bitcoin and Indian rupees.

The company will probably lose more if the bitcoins were not found and they have to pay in rupees at the current bitcoin prices (or higher). But given an insight into the profits made by cryptocurrency trading platforms, one wouldn’t expect the exchange to record negative figures. As could be seen in the recently acquired Coincheck exchange which suffered the biggest cryptocurrency heist still managed a profit of 6.3 billion yen ($57 million) despite the hack that saw the company lose over $500 million in Nem tokens.

Coinsecure has suspended all operations since the attack. The company further noted that it is drafting new contracts for all users who had funds in the bitcoin (BTC) or Indian rupees (INR).

 


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