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Ready to compensate the user 100% of his lost funds, Says CoinDCX

Cryptocurrency Exchange CoinDCX released a statement regarding the recent incident where over 3 BTC were stolen from a user’s account in an alleged hack.

The Statement reads,

Platform was not breached, isolated incident found and one user account impacted

Security upgrades have been resolved, and all user funds are secure

If found culpable of error, we are ready to compensate the user 100% of his lost funds

CoinDCX

On May 13, a user found his CoinDCX account to have been emptied of his entire balance, little over 3 Bitcoins,close to 22 lakh INR. What followed is a series of interactions between the user and the exchange, exchange’s on-going investigation, a viral message about the “hack”, pundits and enthusiasts chipping in on social media, crypto media such as Coin Crunch, youtubers, influencers, everyone using their platform to raise the questions, how did CoinDCX let this happen?

Until now, the official statement from the exchange was that they investigating the issue and hence cannot divulge any information.

However, on Monday CoinDCX released a statement on their blog page and shared it on twitter

The second level of enquiry was conducted jointly with the CoinDCX team as well as an international forensic team to trace the actions post the funds leaving CoinDCX.

CoinDCX says they are in constant communication with the affected user and have promised full support to him. The exchange says they use “industry-leading” security protocols, however nothing can be 100% secure and whenever loopholes are found they plug them immediately.

Furthermore CoinDCX claims, the platform was not breached and the initial investigation by the authorities also came to the same conclusion. 

“Once the systems were in place, we constituted a two-level enquiry. The first level was an internal security assessment, which was conducted to identify and establish entry points, causes and loopholes if any…. It shed light on how the attacker accessed the account by accessing the user’s credentials besides hacking his third party email.”

CoinDCX further conducted a second level inquiry with an “international team” to trace the movement of bitcoins from the hacker’s account. “Our intention was to track the funds and block the usage of those funds. As the investigation is ongoing, divulging additional information may compromise the issue. Once resolved, we will provide full details to the necessary parties” says CoinDCX.

The statement further reads that if the investigation report suggests that CoinDCX was culpable of any error, they will reimburse 100% of the funds lost by the user. CoinDCX may try to use the latest insurance they purchased for 100 Million USD with BitGo to payback, but promises to refund from “own pocket” if the insurance does not come through.

CoinDCX is urging the community to “stand with the user and with us while we complete the investigation process.”

CoinDCX’s statement is now being circulated across social media, once again, people have started sharing their opinion on it. CoinDCX will be reimbursing the funds only if there is evidence that there was an error on their part.

Was there an error on their part? What do you think? Let us know in the comments below.

If you wish to learn more about how the 3 BTC were stolen, you can read this.

Disclaimer: CoinCrunch.in content is informational in nature and is not meant to be investment advice. Buying, trading or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their due diligence before making any decisions. © 2020 CoinCrunch
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