Crypto Exchange Coinsecure Says Theft Probe Is Holding Up Customer Refunds

May 2, 2018 12:17 am Published by

Coinsecure customers have still not been repaid following a theft of nearly 440 bitcoins in mid-April – reportedly by a “rogue” employee, CoinDesk reported Tuesday.

On Sunday, the exchange announced while it previously hoped to begin returning customer funds by this point, it remains unable to do so because of the continuing police investigation, the report said.

In a statement, the exchange said: “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,” the report said. “We will update you when we have definite dates around the start of the process.” 

New contracts will be issued to all customers for both Indian rupees and bitcoin, Coinsecure’s statement said, without elaborating.

Coinsecure previously blamed chief security officer Amitabh Saxena for allegedly exposed the exchange’s private keys while trying to distribute bitcoin gold, a cryptocurrency offshoot of bitcoin, to customers, as previously reported. At the time, chief executive Mohit Kalra said “our customers will be indemnified from our company’s funds,” but cautioned it might take time to recover the stolen coins.

The company later announced if all of the stolen bitcoins were recovered, customers would be repaid fully in the cryptocurrency, but otherwise, they would be paid in a mix of bitcoins and rupees, the report said. In particular, Coinsecure announced 90 percent of the funds would be repaid in rupees according to the price on April 9. At the time, the token was trading at under $7,000, but has rallied to just under $9,000 late Tuesday.

“Please do bear with us as we are working on multiple fronts to resolve the issues at hand at the earliest for our users,” this weekend’s statement explained., Jack Durschlag

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