CoinDCX Suffers $44M Breach, Customer Funds Remain Secure

Indian crypto exchange CoinDCX has confirmed a $44 million security breach involving one of its internal liquidity accounts.

The incident was publicly disclosed on Saturday by CEO and co-founder Sumit Gupta, shortly after blockchain investigator ZachXBT revealed details of the exploit via his Telegram channel.

The breach stemmed from what Gupta described as a “sophisticated server-side exploit” targeting an operational wallet linked to an undisclosed partner exchange. The affected wallet was used solely for managing liquidity, and no customer funds were impacted.

“Our teams moved swiftly to isolate the compromised wallet,” Gupta stated, adding that the attack was fully contained. “Since this was an internal account segregated from customer holdings, the loss will be covered entirely by our own treasury reserves.”

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The company emphasized that all customer assets remain secure in cold storage wallets, which are disconnected from online systems. CoinDCX also said it has initiated a comprehensive security audit and will tighten operational risk controls to prevent future incidents.

The incident highlights ongoing vulnerabilities in centralized crypto operations, even as platforms increasingly adopt multi-tiered wallet architectures to protect user funds. Gupta assured users that all services are operating normally and that further updates will follow as the investigation progresses.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.