CoinDCX Loses $44 Million in Sophisticated Hack: No Customer
Funds Affected
India's popular crypto exchange CoinDCX has confirmed a
major security breach, resulting in a loss
of approximately $44 million (₹380 crore) from its treasury.
The incident occurred on July
20, 2025, and marks one of the most significant cyberattacks on
a cryptocurrency platform in India this year.
What Happened?
According to CoinDCX’s co-founders Sumit Gupta and Neeraj Khandelwal, the
attack stemmed from a compromised internal account that managed liquidity on a
partner platform. This account was not
linked to customer wallets.
The hackers exploited a vulnerability in one
of the company's internal server systems,
gaining access to a treasury account. Once detected, the CoinDCX team acted swiftly, isolating
the affected system and stopping the attack from spreading.
“The total amount lost was ~$44Mn out of our
treasury assets. CoinDCX Treasury will be bearing these losses,” said
Khandelwal on X (formerly Twitter).
Security Measures and Recovery Plan
CEO Sumit Gupta emphasized that the incident was contained quickly
and that no user funds were touched.
“Every security incident is a learning, and we
will learn from this and further strengthen our platform,” Gupta said.
To track and recover the stolen funds, the
exchange is:
·
Collaborating with its partner exchange
·
Launching a bug bounty program to
incentivize ethical hackers
·
Working with cybersecurity experts to
audit and patch vulnerabilities
Khandelwal also confirmed that trading in Web3 assets has been paused as a precaution. However, INR withdrawals and normal trading remain unaffected.
India’s Second Major Crypto Hack in a Year
This attack follows another high-profile
breach in July 2024,
when WazirX lost $234
million due to a compromised wallet hosted on Liminal.
That breach caused:
·
Panic among users
·
Suspension of trading and withdrawals
·
An FIR and global investigations
Even after a year, WazirX has only recovered $3 million, with the attack eventually traced back to North Korean state-sponsored hackers.
CoinDCX Response Reflects Maturity
Unlike WazirX’s disruption, CoinDCX fast communication and containment efforts helped avoid panic. Here's what worked:
| Action | Result |
|---|---|
| Swift isolation of the compromised account | Limited the impact of the attack |
| Clear public updates from co-founders | Maintained trust among users |
| Commitment to bear the losses | Protected user confidence |
| Launch of a bug bounty program | Proactive recovery and future security |
Impact on the Crypto Community
The CoinDCX hack raises several questions
about:
·
Exchange-level
security
·
Third-party
integration risks
·
Cold vs
hot wallet storage
However, the company’s quick response and transparency have reassured many users and analysts.
What This Means for Crypto Users
While CoinDCX has assured that customer wallets were untouched, the
breach is a wake-up call for all
crypto investors.
Best
practices for users include:
·
Keeping assets in personal hardware wallets
·
Using 2FA
and withdrawal whitelist addresses
· Choosing exchanges with strong security audits
Final Thoughts
CoinDCX’s $44 million treasury hack is a reminder of the growing cyber threats in
the digital asset world. While the breach was significant, the exchange’s swift action, honest
communication, and user-first approach may help restore faith.
As Gupta noted, this is an opportunity to "win the war against cyberthreats" in crypto.
