Topic: Major indian exchange gets hacked, 438 bitcoins stolen COINSECURE (Read 1163 times)

Did u finally get your refund? Did anyone else got their refund?
What happened with investigations? Was anyone arrested or held liable by police for the hack?

Tracing down the coins from Co-Insecure hack - https://bitcointalksearch.org/topic/tracing-down-the-coins-from-co-insecure-hack-5204728

Spoke to CoinSecure support executive over the phone call regarding refund. I was told that there is no need of submitting of additional documents if previously mentioned refund agreement documents are submitted. I was told it will take about 30 days to get refunds, they will deposit checks to users bank accounts to the users who have submitted self attested refund agreement documents before deadline.

I also asked about re-start of this exchange after refunds done, and he said they are not certain about restart of this exchange and it also relies on supreme court and RBI decision about Bitcoin/Altcoin on 6 JUL 2018.

As we can see other crypto exchanges are running and payments via banks are being smoothly without any issues. Also the major countries like USA, CAN, UK, FRA, AUS, NZL, JPN, RUS and others has accepted Bitcoin as legal tender or commodity, some countries like RSA, MAL, BRAZIL etc looking forward to legalize Bitcoin into their countries and the other fact is that Bitcoin/Altcoin networks are impossible to terminate, it's just matter of p2p file transfer, so banning of BTC/ALT is useless and perhaps that is the reason above countries legalized cryptos with certain rules to regulate it and taxation on it. Country bans BTC/ALT is likely to go behind in economical race because crypto markets are turned so huge and it may impact on country's economy if banned. Like China banned cryptos in their country and all crypto exchanges and crypto giants fled outside of china and re-established their business.

If cryptos are banned in India, only small investors like us will have problems, exchanges and giants will make their way outside India.

This is a beginning of Digital Era, crypto lovers might face issues currently but sooner or later cryptos will be full flagged worldwide.

CoinSecure users have to wait more to get their money back, hope refunds are made soon.

I was also told by support that over 200 refunds are done already, anyone here got refund?

You can drag Benson's Ass to the court room. Anyway, it isn't going to help. They would have already bribed the cops, cyber crime officials and everyone who opens their mouths against them. You know how it works in India. You can easily get away with Child Rape/Murder/Bank Robbery if you can bribe the cops. This is just a mere 'bitcoin theft', I'm sure Benson would have handled it professionally with Mohit. Only an idiot will continue using them or any other Indian exchanges.

The good thing they do consider on having a reimbursement of compensation for those users who are being affected on those hack but the said due date was too short and we are now June 26,2018 and its 4 days more for the due date to come.
The thing that concerns me into those users who arent based on India or same country and do lost up big amounts of bitcoin then how he would able to make such claim?

Recently received email from CoinSecure as following.

------------------------------------------------------------
Dear Users
 
We are happy to inform you that we have started the process of compensating our customers in Indian Rupees, ex gratia, for the loss of their Bitcoins in the attack that occurred on April 9, 2018. Users will be required to sign an agreement releasing Coinsecure of any future liability and provide certain other documents in order to receive the payment. The Agreement can be downloaded from our website. This agreement will have to be duly signed and delivered to our office along with the documents mentioned in the Agreement before June 30, 2018.
Please note that the last date for submitting claims to us along with all appropriate documents is June 30, 2018. We will not entertain any claims received after June 30, 2018 and we shall have no liability towards any users who try to submit claims after the said date.
 
Thanks
Team Coinsecure
------------------------------------------------------------

LOL, they call it ex gratia payment, their own CSO Mr Amitabh Saxena who made such childish mistake and lost our BTC or maybe scammed, and now when time to payback money to owner of hosted BTC they call it ex gratia payment. They also mentioned other documents to be submitted along with documents submitted earlier for claim of refund before 30 JUNE.

They informed this via email today on 26th JUNE, If they really want more documents from user for refund purpose then users have to submit more documents within 4 days or no refund thereafter, on claims.coinsecure.in there are no other printable agreement documents are available to download besides previous printable refund agreement documents.

I think it's time to drag them to the court and claim full refund plus compensation and all the other costs.

Anyone here has received refund so far?

Guyz, BTC under 400K INR now, we have signed refund documents to receive refunds of BTC at price 438K INR per BTC.

I have submitted refund documents long ago no refund is received yet.

Most interesting thing now is, are they gonna still refund BTC balance in INR at 438K INR price or they will change refund policy to refunding in BTC or they come up with new story that lost BTC are recovered?

I am so excited to hear from CoinSecure, they are caught in their own trap now.

In last conversation with CoinSecure Team I was told that they gonna pay refund by check because e-transfer is no more available by bank for them. While all other Indian crypto exchanges send funds in minutes after withdrawal request via IMPS without any issue.

Let's see what next they announce.

This could be the real good if the directors are ready to pay from tier pocket but how much will they be able to pay it as the stolen amount runs in 400 btc+ and your idea of selling more equity could be a good plan with things start rolling quickly and people receive their money.

They've said that the founders are covering refund expenses from their personal funds. As for the future operations, that's what I'm interested in as well.

Hmm,  they've said:

Is there anybody that has received a refund till now?
I checked 3 threads about coinsecure and there is no proof of a happy ending.


I wonder where those funds can come from....
And more interesting, the exchange is down, right? How are they still making money or how do they plan on doing in the future?

 I submitted required documents for refund 19 days ago, I also confirmed via support email that they received documents and it's verified and i was told i will receive fund within 10-15 days, no fund received yet. Finally when i contacted to their phone support and they said that they ran out of funds and waiting for more funds, once they get funds they will process 10-15 transactions per day so i will receive funds after 2-3 weeks.

 I bet if BTC price goes under 400K INR, they will announce they have recovered lost BTC and refund will be made in BTC.

 Such poor hack story, then self attested documents for refund process and now delay in refund, soon new announcement they will refund in BTC.

 This drama is going on for over 2 months, donno when it will end?

 I think one should report this thru a good lawyer to request authorities to seize their all assets.

Clearly they are asking for tax returns to brush off most of the user's(who don't pay taxes).A very cheap move by coinsecure to save their funds.
People lost their money because of them.Now they are being the bully, and asking for tax returns & ordering people to be "on time" if they want to receive their funds.
They should be sued, for being such a prick.

In case anybody here has a coinsecure account:
https://claims.coinsecure.in/doLogin

The info about the tax returns I've got it from here:
https://thenextweb.com/hardfork/2018/05/18/coinsecure-cryptocurrency-theft-refund/



I'm just taking info from a 3rd source, so it might be true or completely false but we already have somebody claiming the same here on bitcointalk

I haven't seen anybody making a statement about it on bitcointalk either especially when one of their founders was a Staff on bitcointalk. Also this could be a major breach of privacy if a third party organisation is asking for something as confidential as someone's income tax returns.This doesn't sound very professional or a well thought escape plan.

It is not the Government which is asking for the income tax returns, it is Coinsecure. The government already has your tax returns - you file it with them. 
It does seem baffling to me. I haven't seen anybody from Coinsecure making a statement on this so far.

What make you think it is actually the government the one that is demanding those tax returns?

Now, I must first state that I speak knowing how the system works in my country (part of the EU) so there might be a difference to India but..

How can an exchange ask for your tax returns? That would be against the law as that is private financial information, they would have to be authorized by the government to ask this and they would not be able to process this information by themselves, they would have to collaborate with the Financial Minister or whoever assumes the role of the IRS there.

Second, why submitting the tax returns when exchanges that follow KYC and AML laws are already forced by the government to store and report all the fiat transactions that are happening on their exchange?

Nobody but a judge or a trustee could ask for those (see the case of MtGox) and only if there is any doubt about the legality of the funds found (alt lost lates) on that exchange.

This smells  of total bs, it's just a way to scare away people that want to fill claims for the missing coins.
Alongside with all the FUD that goes right now in India about the police hunting down traders, it's a clever way to make sure only a tiny fractions of claims will be filled, those exceeding thousands of dollars maybe.
Those guys will get a few bucks, and everything will be forgotten as I doubt people with a hundred $ worth of coins trapped in coinsecure can afford a lawyer and the lengthy process that will probably cost them twice as much.

I wonder why does Indian Government need all the documents when bitcoin is not even considered as a currency in India ? Does anybody have a feeling that they could bribe the cops to make a clear way out from the complaints they will have from the customers who suffered a potential loss ?

https://thenextweb.com/hardfork/2018/05/18/coinsecure-cryptocurrency-theft-refund/



From Coinsecure part, this is one damn f brilliant move!!!
I'm guessing at least half of the customers will just take the loss and be done with, rather than getting in trouble with the tax department for a few $.
And also they are taking the value from April 9th, which is way below 7000$, a small MtGox copycat....

This is very interesting. If the Company manages to raise more equity and compensates all customers in full (in Bitcoin and not in INR), they can reopen for business very easily. They still have to solve the problem of how to manage running an exchange without having any banking exchanges.

Customers had bitcoin balance and cash in their coinsecure account. Cash would have come from either a recent sale of bitcoin that they were yet to withdraw to their bank account or from money deposited to buy bitcoin in future.

Coinsecure has mentioned that only bitcoin were stolen and they have not mentioned anything about the cash balance.

Before this theft, users could withdraw the cash without giving any ID verification documents. My question is why users cannot withdraw the cash now in a similar manner without providing ID documents?

For further details, refer to settlement agreement posted by coinsecure.

They are asking for too many documents without mentioning why they need it and for how long they will keep it. They want users to take INR equivalent of their bitcoin holding (with coinsecure) at price of 9th Apr. They want users to waive off any and all future claims, so if after settlement coinsecure is able to recover bitcoin, then they are not liable to give back to users as they have already settled at a rate decided by coinsecure.