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Coinsecure Postpones Claims Compensation after $3 Million Bitcoin Theft

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Indian cryptocurrency exchange Coinsecure is postponing the compensation process for customers impacted by the theft of 438 bitcoins earlier this month One of India’s biggest cryptocurrency trading platforms frauds allegedly due to a rogue employee, Dr Amitabh Saxena

In an announcement on its website and emails sent out to customers 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.

Its mailer released on April 29th 2018 says,

“ While our last mailer 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.

When investigations are underway, we don’t have much of a say and do need permissions from the authorities 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.

There will be new contracts rolled out to all our users who held a balance on Coinsecure (INR and Bitcoin).

Please do bear with us as we are working on multiple fronts to resolve the issues at hand at the earliest for our users.

Thank you for your understanding”

Coinsecure’s efforts may be hampered by India’s intensified crackdown on cryptocurrencies even as global prices rebound. The Reserve Bank of India last week banned regulated entities from providing services to users, holders and traders of cryptocurrencies.

If the exchange is unable to get back the cryptocurrency, customers will see 10% of their stolen balances refunded in bitcoin and a further 90% to be returned in Indian Rupees, fiat currency used by India. 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 agreements 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.

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