CoinDCX Reports $44.2M Security Breach In Liquidity Account, Reports That Customer Funds Unaffected
In Brief
CoinDCX reported a $44.2M operational account breach that did not affect customer funds and is being fully covered by the company, with security measures reinforced following the incident.
Blockchain analyst ZachXBT reported via the messaging platform Telegram that the centralized Indian exchange CoinDCX was likely compromised, resulting in an estimated loss of approximately $44.2 million.
According to the findings, the attacker address received initial funding of 1 ETH via Tornado Cash and subsequently bridged a portion of the stolen assets from the Solana network to Ethereum.
In response to the incident, CoinDCX co-founder and CEO Sumit Gupta stated that the breach affected internal operational accounts, which are exclusively designated for liquidity provisioning on a partner exchange, and that the compromise was the result of a sophisticated server-level intrusion.
He clarified that wallets used to safeguard customer assets were not impacted and remain fully secure. Sumit Gupta also emphasized that customer funds have not been affected, user assets remain protected within the platform’s cold wallet infrastructure, and all trading functions and INR withdrawal operations continue to be fully operational.
The breach was promptly contained by isolating the compromised operational account. As the platform maintains a clear separation between operational accounts and customer wallets, the impact was confined solely to this specific account. The resulting loss is being fully covered using the platform’s own treasury reserves.
Internal security and operations teams, in collaboration with external cybersecurity partners, have been actively investigating the incident, addressing any vulnerabilities, and tracking the flow of funds. Efforts are underway with the associated exchange partner to freeze and potentially recover the affected assets.
In addition, the platform intends to introduce a bug bounty program to support ongoing security enhancement. The incident is being treated as a critical learning opportunity, with a stated commitment to further reinforce platform security and to work collectively with industry experts in advancing cybersecurity standards across the digital asset ecosystem.
CoinDCX Expands Global Footprint With Broad Crypto Services, Strong Security Framework, And Strategic BitOasis Acquisition
CoinDCX is based in India and provides access to a wide range of services, including trading across more than 500 digital assets in spot, margin, and futures markets, as well as offerings in Web3, staking, liquidity solutions, and its own utility token, CDX.
The platform supports Indian Rupee deposits and withdrawals and incorporates a suite of security protocols such as multi-signature cold storage, two-factor authentication, ISO/IEC 27001 certification, and proof-of-reserves mechanisms.
In 2021, it became India’s first cryptocurrency unicorn following a $90 million funding round at a $1.1 billion valuation. The company expanded further in 2022 by raising an additional $135 million, bringing its valuation to approximately $2.15 billion. In July 2024, CoinDCX acquired the Dubai-based platform BitOasis, marking a further step toward its international growth strategy.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
