CoinDCX hit by $44.2 million security breach; founders say customer funds unaffected, safe
The total exposure is being absorbed entirely by CoinDCX, using the company's treasury reserves, the company said in a First Incident Report released on Sunday.
According to the report, on July 19, at 4 a.m., CoinDCX security systems detected an incident involving unauthorised access to one of its accounts on the partner exchange, leading to a financial exposure of about $44 million.
The incident once again puts the spotlight on mounting security threats in the highly volatile world of cryptocurrencies. Last year, crypto exchange WazirX faced a hack in India, leading to the loss of more than $230 million, and marking one of the biggest such heists in India. The theft had prompted a thorough examination of safety measures and eroded sentiments.
CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal took to the social media platform X to address the situation, confirming that the attack was the result of a sophisticated server breach, targeting an internal wallet, not the ones holding customer assets.
The incident was first flagged by blockchain investigator ZachXBT, following which the exchange made the disclosure public.
"Today, one of our internal operational accounts -- used only for liquidity provisioning on a partner exchange -- was compromised due to a sophisticated server breach. I confirm that the CoinDCX wallets used to store customer assets are not impacted and are completely safe. This won't cause any loss to our customers. CoinDCX will be bearing the full amount," Mr. Gupta said.
"The total amount lost was USD 44Mn out of our treasury assets. Coindcx Treasury will be bearing these losses," Mr. Khandelwal wrote.
Following this, users rushed to check their balances, leading to a spike in withdrawal requests. The sudden surge in activity led to CoinDCX's portfolio APIs, which display user balances and transaction histories, becoming jammed and unresponsive. For several hours, many were unable to even see their holdings on the app, adding fuel to rumours and anxiety online.
The co-founders later updated that Portfolio APIs have been restored.
Affected infrastructure has been completely isolated, and CoinDCX operations continue to run normally, the company said.
CERT-In, or the Indian Computer Emergency Response Team, has been informed about the incident. Detailed forensics with two globally reputed security agencies is being carried out, and reports will be shared for public benefit, it added.
"CoinDCX services remain fully operational. Trading activity, INR deposits and INR withdrawals continue. INR withdrawals below Rs 5 lakhs will reflect in your account within 5 hours, while withdrawals above Rs 5 lakhs will be processed within 72 hours. The incident was isolated and has no impact on your portfolio access or operations," the company stated.
Social media is flooded with mixed reactions. While some praised CoinDCX for absorbing the losses and protecting user funds, others criticised the delay in public disclosure and raised concerns over the broader security of crypto platforms in India.
"Coindcx silent for 17 hours? That's more suspense than a thriller! In crypto, transparency isn't optional; it's key. Stay open to keep trust alive!" a user wrote.
"Good to see CoinDCX acting responsibly, assuring user funds are safe, and not passing losses onto customers. Sets a positive precedent for Indian crypto exchanges," another said.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


New Indian Express
11 minutes ago
- New Indian Express
Property tax scam: Madras HC seeks probe progress
MADURAI: The Madurai Bench of Madras High Court on Friday directed Tamil Nadu police to file a counter affidavit mentioning the progress of investigation into the Madurai Corporation's property tax scam case. A bench of justices SM Subramaniam and AD Maria Clete gave the direction on a Public Interest Litigation (PIL) petition filed by AIADMK councillor T Ravi seeking CBI investigation into the scam. Earlier, the court had ordered constitution of a special investigation team headed by a senior IPS officer to probe into the scam. When the case was heard on Friday, government counsel said a SIT had been formed under Madurai Range DIG Abhinav Kumar. Recording this, the judges directed police to file a counter affidavit mentioning it as well as the investigation progress, in two weeks and adjourned the case. Ravi has alleged Rs 200 crore loss to the corporation because of the scam. So far, eleven people have been arrested in the case. Five zonal chairpersons and two standing committee chairpersons have resigned from their posts and 15 corporation have been placed under suspension.


New Indian Express
11 minutes ago
- New Indian Express
Madras HC imposes Rs 10,000 fine on Kumari cops, transfers dowry case
MADURAI: The Madurai Bench of Madras High Court has imposed penalty of Rs 10,000 on Kanniyakumari police for failing to take action on a dowry harassment complaint made by a woman at the Nagercoil All Women Police Station, despite orders passed by the magistrate court and the high court. The judge further directed the SP to transfer the case from the AWPS to some other sincere investigation officer. Justice B Pugalendhi passed the order while allowing a contempt petition filed by J Udhaya Santhiya. She had lodged a dowry harassment complaint against her husband and in-laws with Nagercoil All Women Police in February 2023. Since there was no action, she moved the district Munsif cum Judicial Magistrate court in Boothapandi, and the court directed police to inquire into the complaint and register a case. In spite of the order, police did not hold inquiry following which Santhiya moved the HC. In February last year, the court directed police to comply with the magistrate's order. Even then, the police did not register a case, forcing Santhiya to file a contempt petition.


United News of India
11 minutes ago
- United News of India
PM Modi, Maldivian President release commemorative stamps to mark 60th anniversary of diplomatic ties
Male/New Delhi, July 25 (UNI) Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu today released commemorative stamps on the occasion of the 60th anniversary of the establishment of India-Maldives diplomatic relations. Reflecting the age-old bilateral ties between the two countries, the commemorative stamps depict the Indian boat Uru, a large wooden dhow handcrafted in the historic boatyards of Beypore, Kerala, and the traditional Maldivian fishing boat - Vadhu Dhoni. These boats have been part of the Indian Ocean trade for centuries. The traditional Maldivian fishing boat - Vadhu Dhoni - is used for reef and coastal fishing. It depicts Maldives's rich maritime heritage and the close bond between island life and the ocean, a statement said. India was one of the first countries to establish diplomatic relations with Maldives following its independence in 1965. The commemorative stamps release symbolizes the close and historical ties between the two countries. PM Modi is on a two-day state visit to Maldives. He will be the Chief Guest at the 60th anniversary celebrations of Maldives' independence day tomorrow. UNI RN