Indian Bitcoin Exchange Coinsecure claims ‎$3.5 worth of bitcoins stolen in insider hack

How secure is Bitcoin? Depends on whom you ask. Part of the problems Bitcoin has to solve besides its volatility and fluctuation, is security. Hackers having been targeting Bitcoin exchanges since Bitcoin first launched. It is now the new normal to see headlines filled with stories of stolen Bitcoins. India’s Coinsecure is not an exception. Contrary to its name, the company is not secure as it claimed. On Saturday, the Coinsecure Bitcoin exchange said that $3 million worth of bitcoins were stolen by hackers. Coinsecure is an Indian cryptocurrency exchange, said nearly $3 million were stolen from its bitcoin wallet. This is the biggest reported so far in India’s fledgling virtual currency market.

“Our Bitcoin funds have been exposed and seemed to have been siphoned out to an address that is outside our control,” the company said. The firm is working toward recovering the money and “we reassure all our customers that you will be indemnified from our personal funds,” it said.  About Coinsecure’s 11,000 customers are said to be affected by the reported theft which is the biggest cryptocurrency theft in India.

The company promised it will start returning the stolen funds to the affected parties within the next 15 days. “We will announce the refund process in the next 5-10 days. We are working to get the website back up and allow customers to login and withdraw funds,” said Mohit Kalra, chief of bitcoin exchange Coinsecure in an interaction with ET.

A visit to Coinsecure’s website shows a series of statements, displayed as images, with status updates.

The company later issued the following updates on its site.