India's Coinsecure exchange says $3 million worth of bitcoins stolen

A Bitcoin automated machine (ATM) is seen at Hong Lim Complex in Singapore February 7, 2018.  Picture taken February 7, 2018. REUTERS/Dewey Sim

US-CRYPTO-CURRENCIES-INDIA:India's Coinsecure exchange says $3 million worth of bitcoins stolen

By Neha Dasgupta

NEW DELHI (Reuters) - Coinsecure, an Indian cryptocurrency exchange, said nearly $3 million were stolen from its bitcoin wallet, the biggest reported so far in the country's fledgling virtual currency market.

The theft is expected to further weaken trade in cryptocurrencies, which the government has likened to "Ponzi schemes" that offer unusually high returns to early investors.

Coinsecure, which has over 200,000 users trading on its platform daily, said that around 438 bitcoins, which were stored in a password-protected virtual wallet were siphoned off to an unknown destination on the internet after the details were leaked online.

"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 said in a statement posted on its website.

Legal experts said there was a need to regulate the virtual currency market, instead of imposing restrictions on its trade.

"It is for reasons like these that there is a need to regulate crypto-exchanges," said Anirudh Rastogi, founder and managing partner at TRA Law, a firm that specializes in emerging-technology businesses.

"Pushing the exchange business out from the formal economy to the informal cash economy to operate under the radar will worsen the problem, not solve it," Rastogi said.

Coinsecure said it would compensate customers for losses from its existing funds.

Bitcoins in India were trading at 480,000 Indian rupees, or about $7,359 on Friday, according to cryptocurrency exchange Coinome, well below its international market price of about $7,771.

The Reserve Bank of India has already dealt a blow to the crytocurrency exchanges, barring banks from facilitating trade on virtual currencies and mandating them to unwind their existing relationship with exchanges within three months.

Elsewhere in Asia, Vietnam and South Korea have also suffered millions of dollars worth of fraud and embezzlement in some of the cryptocurrency businesses. Earlier this year, one of Japan’s cryptocurrency exchanges was hit by a daring $530 million theft of digital money.

($1 = 65.2800 Indian rupees)

(Reporting by Neha Dasgupta, additional reporting by Abhirup Roy; Editing by Sanjeev Miglani and Shri Navaratnam)

Related News

Taliban suicide attacks, shootout kill 16 in...

Mar 2, 2017

Twin Taliban suicide bombings and a shootout with Afghan security forces that followed one of the...

At least one dead, 35 wounded in Kabul...

Mar 1, 2017

US-AFGHANISTAN-BLAST-CASUALTIES:At least one dead, 35 wounded in Kabul attacks-Afghan official

Taliban claim attacks in Afghan capital, at least...

Mar 1, 2017

US-AFGHANISTAN-BLAST:Taliban claim attacks in Afghan capital, at least 15 dead

Taliban claim attacks in Afghan capital, at least...

Mar 1, 2017

US-AFGHANISTAN-BLAST:Taliban claim attacks in Afghan capital, at least 15 dead

Death toll from Afghanistan attacks climbs to 22

Mar 2, 2017

The Afghan Health Ministry says the death toll from simultaneous suicide bombings in the capital...

Afghan women fencers aim to parry prejudice

Mar 8, 2017

US-WOMENS-DAY-AFGHANISTAN-FENCING:Afghan women fencers aim to parry prejudice

About Us

Get yourself immersed in engaging topics right here. Daily World Feed is a multi-platform media, providing you latest breaking news straight from the industry.

Contact us: sales[at]dailyworldfeed.com

Subscribe Now!