CoinDCX CEO Confirms Internal Account Breach: $44.2M Crypto Drained in Sophisticated Hack
- How Was the CoinDCX Hack Discovered?
- What Did CoinDCX’s CEO Say About the Breach?
- How Did CoinDCX Respond to the Attack?
- What Does This Mean for Crypto Security?
- FAQs About the CoinDCX Hack
In a shocking revelation, CoinDCX CEO Sumit Gupta confirmed a security breach affecting an internal operational wallet, resulting in a $44.2 million loss. The hack, first detected by blockchain security firm Cyvers, involved sophisticated server attacks but left customer funds untouched. Here’s a deep dive into what happened, how the team responded, and what this means for the crypto industry.
How Was the CoinDCX Hack Discovered?
The alarm bells rang when Cyvers, a blockchain security firm, spotted suspicious transactions originating from CoinDCX’s internal wallet. Zach, an analyst at Cyvers, flagged the activity on Telegram, noting that the hacker’s address received 1 ETH from Tornado Cash before bridging stolen funds from solana to Ethereum. The attacker’s addresses were traced to:
- Solana: 6perrbtz28xofajpjzekxnpcpr5xhysqcmjhqfdp22n
- Solana: 3BTCH8CSVP3UH2SIY9DEIRNYUBMFIBNHZQZDYECJS7GU
- Ethereum: 0xef0c5b9e0e9643937d75c229648158584a8cd8d
Interestingly, the breach wasn’t linked to any labeled wallet or CoinDCX’s reserve proof—a detail that raised eyebrows in the crypto community.
What Did CoinDCX’s CEO Say About the Breach?
Sumit Gupta, CEO of CoinDCX, broke his silence on X (formerly Twitter) shortly after Zach’s post went viral. In a transparent address to users, Gupta clarified:
"The compromised account was an internal operational wallet, not one holding customer funds. It was solely for liquidity provisioning on a partner exchange."
He assured users that all customer wallets remained secure, thanks to CoinDCX’s cold storage infrastructure. Trading activities and INR withdrawals continued without disruption.
How Did CoinDCX Respond to the Attack?
The team acted swiftly to isolate the breached account and brought in cybersecurity experts to investigate. Key steps included:
- Patching Vulnerabilities: The team identified and fixed the server weaknesses exploited in the attack.
- Tracking Stolen Funds: Efforts are underway to trace the movement of the $44.2 million in stolen crypto.
- Collaborating with Partners: CoinDCX is working with the unnamed exchange where the liquidity wallet was used.
Gupta also announced plans to launch a bug bounty program to uncover potential security gaps—a MOVE praised by industry watchers.
What Does This Mean for Crypto Security?
This incident highlights the persistent threats facing centralized exchanges. While CoinDCX’s quick response mitigated customer losses, the hack underscores the need for:
- Enhanced Server Security: Even internal systems are vulnerable to sophisticated attacks.
- Transparency: Gupta’s prompt disclosure sets a positive precedent for crisis communication.
- Industry-Wide Vigilance: As Gupta noted, "Every security incident is a learning opportunity."
FAQs About the CoinDCX Hack
Were customer funds affected by the CoinDCX breach?
No. Sumit Gupta confirmed that only an internal operational wallet was compromised, and customer assets remained secure in cold storage.
How much crypto was stolen in the hack?
Approximately $44.2 million worth of cryptocurrency was drained from CoinDCX’s internal wallet.
What is CoinDCX doing to prevent future attacks?
The exchange has engaged cybersecurity firms, patched vulnerabilities, and plans to launch a bug bounty program to identify potential security flaws.
