Indian Police Set to File Legal Charges Involving Coinsecure Wallet Hack

https://www.firstpost.com

New Delhi — Following Coinsecure’s security breach in April that has since resulted in the loss of around 438 Bitcoin, law enforcement authorities of the urban district of Delhi are now slated to file legal charges in an effort to resolve the previous wallet hack.

According to local authorities, the hacking incident appears to extend across the board and is suspected to be perpetrated by the same assailants also allegedly behind a number of other crypto heists across over a dozen digital currency exchanges.

As officer Anyesh Roy explained in a recent report published by The Times of India:

“We contacted some of the exchange firms from where the bitcoins were routed. Initially, they didn’t give a response, but now we are in the process of getting the information through mutual legal assistance treaty.”

The investigation stemmed from a hacking incident nearly half a year ago, when Indian-based Bitcoin exchange Coinsecure broke the news that its offline wallet had been compromised, allowing hackers to amass over Rs 20 crore in Bitcoin equivalent to approximately $2,773,800.

According to the report, “it was later found that the private keys — password kept by the company and stored offline — were leaked online leading to the hack.”

With the crime appearing to be perpetrated on a larger scale, the Indian authorities have sought the aid of Interpol in investigating and tracking the stolen digital assets. As Roy further noted, it would appear that several of the stolen Bitcoins are currently being held in five undisclosed crypto exchanges operating across the country.

The report went on, explaining that:

“Mutual legal assistance treaties are agreements between two or more countries for sharing of information. It is primarily used to request and obtain evidence for criminal investigations and prosecutions.”

In the wake of the hacking incident, the exchange’s CEO blatantly accused its security officer of the crime, stating that:

“‘On April 9th,’ Mr. Kaira continued, ‘we were informed by our CSO […] that 438.318 were stolen from our company’s bitcoin wallet due to some attack. As the private keys were 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.’”

The allegation has since resulted in the arrest of Dr. Saxena, although whether or not the suspect will be named in the official charges on Monday still remains unclear.

Following the suspect’s arrest, the exchange has since begun reimbursing traders affected by the hack.

As Coinsecure previously announced:

“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. 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.”

At present, around $2 million of the lost assets have reportedly already been recompensed.