Coinbase in Advanced Talks to Acquire CoinDCX for Under $1 Billion Post-Cyberattack Valuation Halved Since 2021

Coinbase Global Inc. (COIN) is in late-stage discussions to acquire Indian cryptocurrency exchange CoinDCX at a valuation below $1 billion, a significant drop from its 2021 peak of $2.2 billion. The potential deal, reported by Indian media outlets including Livemint and Techmeme, reflects Coinbase’s strategic focus on expanding its footprint in the Indian crypto market [1][2][3]. The talks follow a $44 million cyberattack on CoinDCX in July 2025, which exploited vulnerabilities in its liquidity provision accounts and is believed to have accelerated the platform’s declining valuation [1].

Sources close to the matter indicate that Coinbase views the acquisition as a long-term bet on India’s crypto ecosystem. The company already holds India’s Financial Intelligence Unit (FIU) registration and has stakes in CoinDCX and CoinSwitch, a competitor. “Buying CoinDCX at this discounted valuation is essentially a low-cost gamble—positioning itself for potential upside if India’s crypto market eventually matures,” one source explained [1]. Coinbase’s renewed regulatory compliance in India, including resuming trading services after a 2023 hiatus, further underscores its commitment to the region [1].

CoinDCX CEO Sumit Gupta has denied the acquisition rumors, calling them “speculative” and reaffirming the firm’s focus on “building for India’s crypto story.” In a tweet, Gupta emphasized that the company is “not up for sale” [1]. Despite these denials, analysts suggest the valuation drop—from $2.2 billion in 2021 to under $900 million as reported—highlights the sector’s volatility. The hack, attributed to the Lazarus Group and linked to similar attacks on WazirX, has eroded investor confidence and prompted CoinDCX to launch a recovery bounty program offering up to 25% of retrieved funds to informants [1].

Coinbase’s potential acquisition would align with its broader strategy of geographic diversification and market consolidation. The company has previously expressed interest in strengthening its presence in untapped regions, and India’s 170 million crypto users make it a critical market. Analysts note that the deal could enhance Coinbase’s technical and regulatory expertise in India, where the government remains cautiously open to structured crypto frameworks [4][5]. However, the lower valuation also serves as a cautionary tale about the fragility of crypto firms in the face of cybersecurity breaches and regulatory shifts [9].

Coinbase’s spokesperson declined to comment on the acquisition rumors but reiterated the company’s commitment to “increasing economic freedom globally” through investments and partnerships [1]. Meanwhile, CoinSwitch co-founder Ashish Singhal downplayed reports of a potential consolidation of Coinbase’s stakes in CoinDCX and CoinSwitch, stating there are “no active conversations” in this regard [1].

The proposed deal, if finalized, would mark a pivotal moment for India’s crypto sector, balancing the risks of market turbulence with opportunities for institutional growth. For Coinbase, the move represents a calculated effort to secure a foothold in a region poised for digital asset adoption, even as it navigates the challenges of regulatory scrutiny and operational security.

---

[1] https://cryptonews.com/news/coinbase-in-advanced-talks-to-acquire-coindcx/

[2] https://www.livemint.com/companies/news/coinbase-coindcx-44-million-crypto-heist-us-cryptocurrency-coinswitch-1175****315291.html

[3] https://www.techmeme.com/250728/p30

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

[5] https://www.tipranks.com/news/the-fly/coinbase-in-advanced-talks-to-acquire-indias-coindcx-mint-reports-thefly

[9] https://cryptorank.io/news/feed/7f9c7-interactive-brokers-mulls-stablecoin-launch-to-serve-users