Coinsecure Delays Compensation Claims after $3 Million Bitcoin Theft

Coinsecure Delays Compensation Claims after $3 Million Bitcoin Theft

Indian cryptocurrency exchange Coinsecure is delaying the compensation process for customers impacted by the theft of 438 bitcoins earlier this month.

In an announcement on its website on Sunday, Delhi-based cryptocurrency exchange Coinsecure has offered its reason for the lack of progress in reimbursing its users following the $3 million theft of customers’ bitcoins from its wallets over a fortnight ago.

‘While our last mailer [on April 21] did state that we were hoping to start the disbursement of funds by the end of last week, there has been a delay on that front,’ the exchange said on Sunday.

Notably, it added:

When investigations are underway, we don’t have much of a say and do need permissions from the authortiies to start the compensation process, which we are yet to receive. We will update you when we have definite dates around the start of the process.

An ongoing investigation into the theft, believed to be an inside job, has seen Coinsecure pledge to reimburse the siphoned bitcoins back to customers’ account balances if it recovers the stolen bitcoin.

If the exchange is unable to recover the cryptocurrency, customers will see 10% of their stolen balances refunded in bitcoin and a further 90% to be returned in rupees, India’s fiat currency. At current prices, Coinsecure users stand to lose nearly 35% in bitcoin value gains if they see most of their refunds in Indian rupees.

Furthermore, the exchange insists its legal team is working on new contracts to all users who hold a balance at the exchange in bitcoin or Indian rupees. As things stand, the exchange isn’t operational and has been in a dormant state since the theft came to light in mid-April.

Featured image from Shutterstock.