Coinsecure Hack Investigation Brings New Evidence to Light

Cryptocurrency service providers endure a hacking attempt rather regularly. Coinsecure, a prominent company in India, had 438 bitcoins stolen in early April. Five months after the fact, New Delhi Police officials are finally ready to file charges. This development may finally put this ongoing investigation to bed once and for all.

The Coinsecure Hack Investigation

Cryptocurrency exchanges are a prominent target for criminals. A successful hack can net anywhere from a few thousand to a few million dollars worth of cryptocurrency. In the case of Coinsecure, the firm lost 438 BTC due to an incident in April of 2018. An investigation was launched shortly after, yet appeared to yield no immediate results. Finding the culprits has been an ongoing challenge ever since.

The New Delhi Police’s Cyber Cell is now ready to file charges. One of Coinsecure’s staff members is of great interest in this regard. The firm’s chief security officer (CSO) was arrested on suspicion of being a prime suspect related to this theft. It is still believed the Coinsecure hack is an inside job.

Through mutual legal assistance treaties, a chargesheet has been submitted. Five cryptocurrency exchange firms are involved in putting together this information as Interpol tracked some of the stolen bitcoins to these exchanges. Their evidence can further incriminate Coinsecure’s chief security officer. New Delhi police officials remain tightlipped on which trading platforms are actively participating in this ongoing case.

Potential Impact on India’s Upcoming Regulation?

Coinsecure has shut down its operation since the hack in April. The firm has compensated users by paying funds out of their own pocket. It now seems the case and its associated investigation may come to an end.

This new development may impact India’s ongoing regulatory debacle regarding cryptocurrency. The Supreme court will validate or reject the RBI’s cryptocurrency banking ban. By putting the Coinsecure hack to rest, a positive development looms on the horizon for the cryptocurrency industry. However, the government is still drafting guidelines, and their full intent remains unclear.

While criminals have stolen a great deal of Bitcoin over the years through hacks or ransomware, multiple culprits have been apprehended successfully. In most cases, this is achieved through performing blockchain analysis pertaining to the Bitcoin transactions in question. It appears this case is heading down a similar path, partially thanks to the cooperating trading platforms. Getting away with Bitcoin-related crimes is a lot more difficult in this day and age.

Were you impacted by the Coinsecure hack? Let us know in the comments below.

Images courtesy of Shutterstock.