Bitcoins worth Rs 20 crore stolen in Delhi after e-wallets hacked

The Hush Post: In a first case of  theft of the new cryptocurrency in the country, a leading bitcoin exchange firm has lost bitcoins worth Rs 20 crore after most of its wallets were hacked. 440 bitcoins have been stolen.

Senior officers of Delhi Police’s Cyber Cell confirmed the incident and said the firm, identified as Coinsecure, told them about the theft.

The company, which has over two lakh users across the country, told police that they got to know about the theft on Monday while going through all the wallets. A senior security officer found that all the bitcoins that were stored offline had vanished. It was later found that the private keys, the password that is kept by the company and is stored offline, were leaked online.
The company tried to trace the hackers, but found that all the data logs of the affected wallets had been erased, leaving no trails about where the bitcoins were transferred to. The website of the company has since then remained shut. On Thursday night, the company confirmed the hack to their users through a message posted on the website.

“We regret to inform you that our bitcoin funds have been exposed and seem to have been siphoned out to an address that is outside our control,” the company stated.

The company’s founder and CEO Mohit Kalra told a national daily that he suspects an insider’s hand in the IT robbery.  Cyber security experts said that the private keys – the password that is kept by the company- are never connected to an online system. But police found that not only were the private keys online, they were kept like that for more than 12 hours.

He further said that even if funds are not recovered, his company was willing to pay from its own pocket to compensate its customers.

Police said that the company’s servers have been seized to ascertain the extent of the system breach. A case was registered under IPC sections and Section 66 of the IT Act.

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