Zebpay Aids Indian Police After Bank Thieves Buy Bitcoin

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Indian bitcoin alternate Zebpay has had its checking account unfrozen following a state investigation right into a financial institution theft, the startup mentioned right this moment.

Regional information service Pune Mirror reported earlier this week that criminals had exploited a bug that allowed them to steal lots of of hundreds of from the state-owned Bank of Maharashtra. Those behind the heist then exchanged a few of these funds for bitcoins by Zebpay.

In investigating the crime, police froze three financial institution accounts tied to the outgoing funds, together with one owned by the alternate. According to the report, 4 people had been finally recognized because the alleged culprits, all residents of the town of Buldhana.

When contacted by CoinDesk, Zebpay co-founder Sandeep Goenka mentioned that the bug had allowed the hackers to spend extra money than was really held within the affected accounts, a few of which was used to purchase bitcoins with the alternate.

The startup had cooperated with the investigation into the theft, he defined, including that “operations were normal during this period and none of our users were affected”.

Goenka instructed CoinDesk:

“Zebpay helped the Pune Cyber Crime department to get back the bitcoins purchased by the accused. This was possible because we follow KYC for all users. The Cyber Crime office then gave orders to sell the bitcoins to recover the money. These bitcoins were also sold on Zebpay.”

According to the co-founder, the court docket has already given orders to unfreeze the alternate’s checking account and the “matter is now closed”.

Zebpay, based in 2012, raised $1m in a Series A funding spherical in early 2016.

Hacker image through Shutterstock

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