Coinsecure India Pvt Ltd

Summary

A cryptocurrency exchange based in India suffered a theft of 438 bitcoins valued at approximately $3.3 million from its primary wallet during an operation to extract Bitcoin Gold for customer distribution. The CEO asserted that only himself and the Chief Strategy Officer possessed access to the wallet's private keys, directly implicating the officer in the loss. The accused officer disputed responsibility, claiming the funds were stolen via an external attack. The exchange filed a police complaint urging authorities to seize the officer’s passport over concerns of potential flight risk and requested further investigation to determine accountability for the missing assets.

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Description

On April 13, 2018, Indian cryptocurrency exchange Coinsecure announced the unauthorized transfer of 438 Bitcoin (valued at approximately $3.3 million) from its primary wallet to an external account outside its control. The company identified the incident during an internal process to extract Bitcoin Gold (BTG) for customer distribution, an operation managed by Chief Strategy Officer Dr. Amitabh Saxena. CEO Mohit Kalra stated that only he and Saxena possessed access to the wallet's private keys, with Saxena directly handling the key extraction procedure. Kalra's initial assessment attributed the loss to Saxena's actions during this process, claiming the CSO reported the funds as "lost" during private key extraction. Coinsecure promptly published an official statement on its website alongside a scanned copy of a police complaint filed by Kalra with local authorities in New Delhi.

The CEO explicitly accused Saxena of responsibility for the missing funds, dismissing external hacking as the cause. In his police complaint, Kalra requested the seizure of Saxena's passport, citing concerns the CSO might attempt to leave India. Saxena countered these allegations, asserting the Bitcoin was stolen from the wallet through an external attack. Coinsecure's public disclosure included both the company's signed statement and the police documentation, emphasizing Kalra's demand for law enforcement intervention to establish accountability. The incident represented a direct financial loss equivalent to the stolen cryptocurrency's market value at the time, with no immediate recovery mechanisms detailed. No technical details regarding wallet security protocols, forensic findings, or potential attacker methodologies were disclosed in the initial public communications. The exchange's response centered on legal escalation against Saxena rather than external threat remediation, leaving the precise cause unresolved in public reporting.

Sources

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