CoinDCX Rebounds: INR Withdrawals Resume Post-$44M Security Breach—Here’s What Changed

Indian crypto giant CoinDCX flips the 'on' switch after a $44 million hack forced a system-wide pause. Withdrawals are back—but trust doesn't recharge as fast as a hot wallet.

The Breach That Froze a Billion-Dollar Pipeline

Attackers drained eight figures before CoinDCX's security team slammed the brakes. Now, after forensic audits and 'enhanced protocols' (read: patching holes), INR withdrawals get the green light.

Rebuilding Fort Knox—With Blockchain Glue

New multi-sig requirements and AI-driven anomaly detection join the defense roster. Too bad they didn't come standard—like airbags in a Lamborghini.

Users report sluggish KYC reverification queues. Because nothing says 'decentralized future' like waiting 72 hours for a human to check your selfie.

The Cynic's Corner

Exchanges treat security like a SaaS subscription—pay only after the breach. Meanwhile, Binance's 'SAFU' fund quietly sips champagne.

ZachXBT IDs attack

On-chain investigator ZachXBT first identified the attack approximately 17 hours prior to the exchange publicly disclosing the incident.

ZachXBT traced the attack to an address funded with 1 ETH from Tornado Cash, with the attacker later bridging stolen funds from Solana (SOL) to ethereum (ETH).

Tel Aviv-based security firm Cyvers flagged the suspicious withdrawals, prompting manual attribution, as the affected CoinDCX hot wallet lacked public tags and proof-of-reserves documentation.

Hi everyone,

At @CoinDCX, we have always believed in being transparent with our community, hence I am sharing this with you directly.

Today, one of our internal operational accounts – used only for liquidity provisioning on a partner exchange – was compromised due to a… pic.twitter.com/L1kZhjKAxQ

Customer funds remain secure

CoinDCX CEO Sumit Gupta addressed the community directly and mentioned that the breach did not impact customer assets.

“No customer funds have been impacted. Your assets remain completely SAFE and protected in our secure cold wallet infrastructure,” Gupta stated in his initial disclosure.

The hack affected an internal operational account used solely to provision liquidity on a partner exchange, not consumer deposit wallets.

“The incident was quickly contained by isolating the affected operational account. Since our operational accounts are segregated from customer wallets, the exposure is only limited to this specific account,” Gupta explained.

CoinDCX exchange restores full functionality

Following the security incident, CoinDCX temporarily suspended certain operations while investigating the breach. The exchange has since restored all trading activities and INR withdrawal capabilities without restrictions.

Trading and INR withdrawals on CoinDCX are fully operational and running smoothly. ✅

You can withdraw your INR anytime — without restrictions. We’re here for you, and we stand by our commitment to honour all withdrawal requests. 💯

A gentle reminder: Don’t panic sell your… https://t.co/e4DWVvYx0i

“Trading and INR withdrawals on CoinDCX are fully operational and running smoothly. You can withdraw your INR anytime — without restrictions,” Gupta announced. He urged users against panic selling, warning that hasty decisions “often leads to poor prices and unnecessary losses.”

What’s next

The exchange is collaborating with its partner platform to block and recover stolen assets while implementing additional security measures.

CoinDCX plans to launch a bug bounty program to incentivize security researchers to identify potential vulnerabilities.

“Every security incident is a learning and we will learn from this and further strengthen our platform,” Gupta stated.