COINDCX CEO Confirms Internal Account Breach: $44.2M Drained in Sophisticated Attack
- What Happened During the COINDCX Breach?
- How Did COINDCX Respond to the Attack?
- Why Transparency Matters in Crypto Security
- Lessons Learned and Future Protections
- FAQ: COINDCX Security Breach Explained
COINDCX, a leading Indian cryptocurrency exchange, faced a $44.2 million security breach involving an internal operational wallet. CEO Sumit Gupta confirmed the incident, emphasizing that no customer funds were impacted. The breach, linked to a "sophisticated server attack," was detected by blockchain security firm Cyvers. Here’s a deep dive into what happened, how the exchange responded, and why transparency matters in crypto security.
What Happened During the COINDCX Breach?
On July 19, 2025, blockchain security firm Cyvers flagged suspicious transactions tied to COINDCX’s internal wallet. Analyst Zach XBT publicly shared findings via Telegram, noting the hacker’s address received 1 ETH from Tornado Cash before bridging stolen solana funds to Ethereum. The attacker’s addresses included:
- Solana: 6perrbtz28xofajpjzzekxnpcpr5xhysqcmjhqfdp22n
- Ethereum: 0xef0c5b9e0e9643937d75c229648158584a8cd8d
Gupta later clarified the compromised wallet was solely for liquidity provisioning on a partner exchange, not customer holdings.
How Did COINDCX Respond to the Attack?
Within hours, COINDCX’s team isolated the breached account and engaged cybersecurity experts to trace fund movements. Gupta assured users via X (formerly Twitter):
"No customer funds were impacted. Assets remain secure in our cold wallet infrastructure. INR withdrawals and trading are fully operational."
The exchange is covering losses from its treasury and collaborating with the unnamed partner exchange to investigate.
Why Transparency Matters in Crypto Security
This incident highlights the growing sophistication of attacks targeting centralized exchanges. While COINDCX’s quick disclosure aligns with Web3 values, some users questioned the 17-hour delay between the hack and public acknowledgment. As one BTCC analyst noted, "Proactive communication builds trust—especially when $44 million vanishes."
Lessons Learned and Future Protections
COINDCX plans to launch a bug bounty program and enhance server defenses. Gupta framed this as a wake-up call: "Every dent is a learning opportunity. We’ll emerge stronger." The exchange commits to real-time updates, setting a precedent for crisis management in India’s crypto sector.
FAQ: COINDCX Security Breach Explained
Were customer funds stolen in the COINDCX hack?
No. The breached wallet was an internal operational account used for liquidity provisioning, not customer deposits.
How much was stolen from COINDCX?
Approximately $44.2 million in crypto assets, per Cyvers’ analysis.
Can users still trade on COINDCX after the hack?
Yes. The exchange confirmed all trading and INR withdrawal services remain functional.
