Article:
The Indian cryptocurrency platform CoinDCX has experienced a cyberattack, resulting in a $44 million loss. This event follows a similar incident where the Indian exchange WazirX was hacked for $235 million exactly one year ago.
CoinDCX Server Compromise: Customer Funds Remain Protected
On July 19, CEO Sumit Gupta of CoinDCX announced on platform X that a server breach affected one of the exchange’s internal operational accounts. He emphasized that the compromised wallet is solely used for providing liquidity on a partner exchange, ensuring that all user funds are intact and INR withdrawals continue to function seamlessly.
Furthermore, Gupta assured that the breach was contained by quarantining the impacted account. The exchange plans to cover the financial loss using its reserves while initiating measures to identify those responsible for the hack.
The CEO outlined a multi-pronged approach to address the breach, including an internal security evaluation and an upcoming bug bounty initiative.
Gupta stated:
Our dedicated security and operations teams have been collaborating with top cybersecurity firms to resolve the issue, address vulnerabilities, and monitor fund movements. We are working with our exchange partner to freeze and reclaim assets, and are set to introduce a bug bounty program shortly.
However, on-chain expert ZachXBT criticized CoinDCX for delaying the disclosure of the breach by 17 hours, despite its commitment to transparency. He also provided updates on the hacker’s activities in a Telegram message:
The hacker’s address received 1 ETH from Tornado Cash, and a portion of the stolen assets was transferred from Solana to Ethereum.
Gupta regards the incident as a learning opportunity, highlighting the crypto sector’s ongoing efforts to combat cybersecurity threats.
Crypto Industry Losses Soar to $2.17 Billion
The attack on CoinDCX represents the latest significant breach in the cryptocurrency sector, emphasizing the critical need for comprehensive security strategies. According to Chainalysis, cybercriminals stole a total of $2.17 billion from crypto platforms in the first half of 2025 alone.
This alarming figure surpasses the nearly $2 billion lost in 2024. Chainalysis warns that if such incidents persist, the crypto industry could face losses totaling $4.3 billion by year-end.