Coinbase in Talks to Acquire CoinDCX Amid $44.2M Hack, Offer Below $1B Valuation

Coinbase is reportedly in advanced negotiations to acquire CoinDCX, one of India’s largest cryptocurrency exchanges, despite the platform suffering a $44.2 million security breach in July 2025 [2]. The potential deal, valued below $1 billion—far less than CoinDCX’s $2.2 billion valuation in 2022—reflects a strategic move by the U.S.-based crypto giant to consolidate its presence in India [2]. Coinbase, which already holds equity in CoinDCX and its rival CoinSwitch, described the acquisition as a “low-cost gamble” on India’s long-term crypto potential [2]. While the company has not confirmed the talks, it reiterated its global mission to expand economic freedom and exploration of opportunities to “build, buy, partner, and invest” [2].

The reported acquisition follows a high-profile hack of CoinDCX’s internal liquidity account, which exploited vulnerabilities in its hot wallet infrastructure. Attackers drained funds within minutes using mixing tools, complicating recovery efforts [2]. CoinDCX defended its delayed public disclosure, emphasizing a focus on thorough investigation, but critics highlighted the incident as symptomatic of broader weaknesses in India’s crypto sector [2]. The exchange has launched a bounty program offering up to 25% of recovered funds, a strategy previously employed after the 2023 WazirX hack [2].

CoinDCX’s financial structure raises concerns for potential acquirers. A significant portion of its revenue in recent fiscal years originated from related-party transactions, and its reliance on self-scoped proof-of-reserves audits has drawn scrutiny for lacking transparency [2]. Fintech expert Jayjit Biswas noted that CoinDCX’s 28% exposure to hot wallets far exceeds the global benchmark of under 5%, heightening risks for institutional investors [2]. The hack underscores gaps in India’s regulatory framework, where consumer protection measures remain underdeveloped despite ongoing anti-money laundering and tax enforcement efforts [2].

Coinbase’s potential acquisition aligns with its broader strategy to expand in India, having registered with the country’s Financial Intelligence Unit (FIU) in March 2025 and preparing to launch retail crypto trading operations [2]. However, the move also highlights the challenges of operating in a sector marked by weak governance. Legal expert Pranesh Prakash emphasized the need for outcome-based regulations focused on investor protection, such as insurance and third-party audits, rather than compliance-heavy approaches [2]. CoinSwitch, another major player, acknowledged structural hurdles like high taxation and regulatory ambiguity, which hinder robust security and compliance investments [2].

The deal, if finalized, could signal a turning point for India’s crypto landscape. While Coinbase’s scale and resources may strengthen CoinDCX’s security infrastructure, systemic issues persist if regulatory gaps remain unaddressed. For now, the talks remain confidential, with no active discussions reported between CoinDCX and CoinSwitch [2]. As Coinbase navigates this complex market, its actions will likely influence how global crypto firms approach India’s volatile but high-growth sector.

Sources:

[1] https://www.tradingview.com/news/cointelegraph:83800708a094b:0-coinbase-reportedly-in-advanced-talks-to-buy-coindcx/

[2] https://www.moneycontrol.com/news/cryptocurrency/coinbase-in-talks-to-acquire-coindcx-amid-aftermath-of-44-million-hack-report-13341588.html

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

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