Coinbase Acquires CoinDCX for Under $1 Billion Amid $44M Hack Fallout

Coinbase is reportedly in advanced discussions to acquire India’s CoinDCX for under $1 billion, a valuation significantly lower than the exchange’s 2021 peak of $2.2 billion, following a $44 million security breach in July 2025 [1]. The proposed deal, first reported by Indian media outlet Livemint, would deepen Coinbase’s foothold in India’s rapidly growing cryptocurrency market, where the U.S. firm has previously invested in both CoinDCX and its rival CoinSwitch. The acquisition would also mark Coinbase’s second major purchase this year after its $2.9 billion acquisition of Deribit [1].

The hack, which targeted CoinDCX’s internal hot wallet used for liquidity provisioning on a partner exchange, resulted in the theft of 10,000 Ethereum and 12 million USDT. While customer funds remained secure in cold storage, the incident exposed vulnerabilities in centralized custody practices, prompting regulators and critics to scrutinize the exchange’s operational safeguards [1]. CoinDCX has since reimbursed the losses using treasury reserves and launched a bounty program offering up to 25% of recovered funds, capped at $11 million. Blockchain investigators identified two wallets holding over 155,000 Solana and 4,400 Ethereum as potential leads, though attribution to North Korea’s Lazarus Group remains unconfirmed [1].

The acquisition reflects Coinbase’s broader strategy to consolidate market share in emerging markets amid shifting regulatory landscapes. India’s crypto sector, while still unregulated, is nearing its first formal policy framework, creating opportunities for larger players to establish compliance-driven operations. Coinbase’s prior exit from India in 2022 due to regulatory uncertainty contrasts with its current pivot, driven by the recent acquisition of a Financial Intelligence Unit license in March 2025 [1]. By integrating CoinDCX, Coinbase could leverage the exchange’s existing infrastructure and user base to scale its services in India, where demand for digital assets continues to rise despite the hack.

Industry analysts note that the deal underscores the cyclical nature of the crypto market, where valuations fluctuate rapidly amid macroeconomic shifts and security incidents. CoinDCX’s discounted valuation highlights the reputational damage caused by the hack and the sector’s inherent volatility. For Coinbase, the acquisition represents a calculated risk to strengthen its position in a competitive market while addressing CoinDCX’s operational weaknesses through its own security protocols [1]. However, the success of the deal will depend on Coinbase’s ability to rebuild user trust and ensure seamless integration of CoinDCX’s operations.

The transaction also raises broader questions about the resilience of centralized exchanges in an industry increasingly plagued by cyberattacks. The CoinDCX breach has intensified calls for stricter regulatory oversight in India, where authorities are finalizing guidelines for crypto asset management. A Coinbase-led acquisition could set a precedent for how larger firms address security lapses in smaller exchanges, either through direct intervention or by enforcing compliance with global standards [1].

References:

[1] https://crypto.news/coinbase-acquire-coindcx-exchange-after-44m-hack-2025/