CoinDCX Insider Breach Highlights Crypto’s Internal Vulnerability

CoinDCX, one of India's largest cryptocurrency exchanges, suffered a $45 million loss due to an insider breach. A former employee allegedly exploited internal systems to siphon funds over several weeks, raising concerns about internal security risks in the crypto industry.

The 27-year-old software engineer used privileged access to transfer customer and company funds to private wallets, evading detection by mimicking regular exchange activity. Bengaluru police arrested the suspect following a complaint from Neblio Technologies, CoinDCX's parent company.

While external hacks dominate headlines, this incident underscores the growing threat of insider attacks in digital asset platforms. The case reveals critical vulnerabilities in access controls and monitoring systems at crypto exchanges.