Indian Crypto Exchange CoinDCX Hit by $44.2 Mn Security Breach, Founders Reassure Customer Funds Unaffected.

Indian cryptocurrency exchange CoinDCX has suffered a $44.2 million security breach, but customer funds remain unaffected and safe. The breach was limited to an internal operational account, and the company is absorbing the exposure entirely from its treasury reserves. CoinDCX co-founders confirmed the attack was a sophisticated server breach targeting an internal wallet, not customer assets. CERT-In has been informed, and the company is conducting detailed forensics with security agencies.

Indian cryptocurrency exchange CoinDCX has suffered a $44.2 million security breach, but customer funds remain unaffected and safe. The breach was limited to an internal operational account, and the company is absorbing the exposure entirely from its treasury reserves.

The attack, which targeted an internal wallet used for liquidity provisioning on a partner exchange, was a sophisticated server breach. CoinDCX co-founders confirmed that customer assets were not compromised, and the exchange has assured users that trading and withdrawal services remain fully operational.

The incident was initially detected by independent on-chain investigator ZachXBT, who traced the breach through cross-chain transactions involving Solana and Ethereum. CoinDCX CEO Sumit Gupta acknowledged the breach and reassured users that no customer funds were lost. Gupta stated that the affected wallet was isolated and that all losses would be covered by the company's treasury reserves.

CoinDCX has pledged to launch a bug bounty program to uncover additional vulnerabilities and enhance platform defenses. The company is also working with global cybersecurity partners to investigate the breach and trace the stolen funds.

The security breach comes at a time when crypto security is under the spotlight in India. The government is expected to release its first crypto policy paper soon, which could bring clearer regulations to the sector. This incident serves as a reminder of the evolving threats facing crypto platforms globally.

CoinDCX's breach adds to a series of recent global crypto hacks. According to a CertiK report, total crypto losses reached $2.5 billion in the first half of 2025. Despite the recent increase in successful attacks, the industry continues to face persistent threats, underscoring the urgency of improving digital defenses.

CoinDCX has confirmed that it has informed CERT-In about the breach and is conducting detailed forensics with security agencies. The company has promised to share all verified details once the investigation is complete.

References:

[1] https://coinedition.com/coindcx-hacked-44m-zachxbt-exposes-breach-delay/
[2] https://www.ndtv.com/india-news/crypto-platform-coindcx-hacked-nearly-rs-368-crore-lost-in-huge-security-breach-8912495
[3] https://cryptonewsland.com/indian-exchange-coindcx-hit-by-44-million-hack/
[4] https://www.business-standard.com/markets/cryptocurrency/coindcx-cyberattack-44-million-customer-funds-portfolio-affected-125072000147_1.html