CoinDCX Reports $16 Million Loss Following Wallet Breach

CoinDCX Confirms Significant Loss

CoinDCX, a leading cryptocurrency exchange in India, has reported a loss of approximately $16 million due to a breach in its wallet infrastructure. This admission contradicts earlier statements from CEO Sumit Gupta, who had dismissed the situation as a "false alarm." The loss stems from an internal process failure that allowed 15.99 million USDT to be drained from wallets that CoinDCX had retired following a previous security incident.

Details of the Incident

The incident occurred on October 21, with the funds being transferred on the Tron network. CoinDCX acknowledged that it has absorbed the loss and assured customers that their funds remain secure. The exchange traced the issue to a failure in an automated system designed to clear customer deposits from legacy wallets, which were still receiving residual deposits despite being out of service.

Reactions and Previous Incidents

CoinDCX's recent loss adds to its troubled history, following a significant hack last year that cost the exchange about $44 million. This previous breach was attributed to a server vulnerability, leading to legal action against an employee. The total losses from these two incidents now approach $60 million.

After the breach was highlighted by blockchain researchers and on-chain investigator ZachXBT, Gupta initially claimed that the wallets had not been breached and that the flagged addresses were compromised back in July 2025. However, ZachXBT disputed this assertion, cautioning users to withdraw their assets from CoinDCX.

"Withdraw all funds from CoinDCX if you value your assets... They publicly and privately denied a theft of its assets occurred, meaning they straight up lied or are negligently incompetent," ZachXBT tweeted.

Ongoing Investigations

CoinDCX has faced various challenges this year, including allegations of fraud and impersonation scams that have prompted police investigations. The company has also denied rumors of acquisition discussions with Coinbase, which is expanding its footprint in South Asia and the Middle East.

As investigations continue, CoinDCX has pledged to provide further updates while reiterating that user balances remain unaffected.