Coinsecure Announces Bounty Reward and Customer Repayment Plan to Address BTC Losses

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On Thursday, Indian digital currency exchange Coinsecure revealed the theft of roughly 438 Bitcoins, worth more than $3.5 million. This weekend, the company announced its plan to repay customers for their losses and launched a bounty program to reward anyone who helps the exchange recover those stolen Bitcoin.

In a statement on Friday, Coinsecure reassured customers that their INR funds on the exchange remained secure. That statement also provided the Bitcoin address to which the stolen coins were directed and offered a bounty reward of 10% for assistance in recovering the losses.

On Saturday, an update from the exchange outlined its plans to repay its customers. The company provided additional assurances about the security of customer INR funds and expressed its confidence that all lost BTC holdings would be recovered and refunded to customer accounts.

That statement also revealed the exchange’s plan for repaying customers in the event that a full recovery of the stolen coins proves impossible. If that happens, then the company plans to reimburse those customers for their losses, with the amount repaid based on the April 9 value of the holdings. According to the statement, that option would repay customers in both INR and Bitcoin, with 90% of the repayment made in INR and 10% repaid with Bitcoin.

Coinsecure had blamed the losses on its Chief Security Officer (CSO), who reportedly told company executives that the coins were siphoned while he was extracting bitcoin gold for customers. The exchange’s Director, Mohit Kalra reportedly sent a letter to Indian authorities suggesting that the company did not find that explanation credible:

"As the private keys are kept with Dr Amitabh Saxena, we feel that he is making a false story to divert our attention and he might have a role to play in this entire incident.”

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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