Sophisticated Server Breach at CoinDCX: $44mln Stolen, Customer Assets Safe

CoinDCX, a crypto exchange, revealed a "sophisticated server breach" that compromised its internal operational accounts, but investor accounts and funds remained unaffected. The CEO confirmed that the breach was contained, and efforts are underway to patch vulnerabilities. Over $44 million was stolen during the attack, but customer assets were safe and protected. Trading activity and withdrawals continued as usual.

July 2, 2025 - Indian cryptocurrency exchange CoinDCX revealed a significant security breach on Friday, resulting in the loss of approximately $44 million. The hack occurred through a "sophisticated server breach," according to CoinDCX CEO and co-founder Sumit Gupta, who announced the incident on Saturday.

The attack compromised one of CoinDCX’s internal accounts used for liquidity provisions with another exchange. No user funds were affected due to the exploit, as operational accounts are segregated from customer wallets. Gupta confirmed that all customer funds remain safe and that the exchange has absorbed the loss from its own treasury reserves [1].

The breach was quickly contained by isolating the affected operational account. Onchain sleuth ZachXBT traced the attacker's address, which was funded with 1 Ether (ETH) from Tornado Cash and later bridged a portion of the stolen funds from Solana to Ethereum [1].

The hack comes as a reminder of the persistent cybersecurity threats facing the crypto industry. Analyst Infinity Hedge noted that popular Indian exchange WazirX was hacked for $235 million on this exact date, one year ago [1].

CoinDCX has taken immediate action to patch vulnerabilities and reinforce its security measures. Trading activity and withdrawals continued as usual, reassuring investors that the exchange remains operational. The incident underscores the importance of robust security frameworks and proactive risk management in the crypto exchange ecosystem.

The $44 million loss at CoinDCX is part of a broader trend of high-profile cryptocurrency exchange breaches in 2025. Earlier this year, BigONE experienced a significant security breach resulting in a loss of approximately $27 million. Other notable incidents include Bybit, which lost $1.5 billion, and Phemex, which reported $85 million drained from its hot wallets [3].

These breaches highlight the critical need for enhanced cybersecurity measures and regulatory oversight within the crypto industry. Industry experts advocate for the adoption of multi-layered security strategies, including cold storage solutions, multi-signature wallets, and continuous security audits. For investors, these incidents serve as a reminder to exercise caution and prioritize platforms with transparent security practices.

References:

[1] https://cointelegraph.com/news/crypto-exchange-coindcx-hacked-42-million-drained
[2] https://cointelegraph.com/news/crypto-exchange-coindcx-hacked-42-million-drained?utm_campaign=rss_partner_inbound&utm_medium=rss&utm_source=rss_feed
[3] https://www.ainvest.com/news/bigone-loses-27-million-hot-wallet-hack-2507/