20.07.2025 00:42
A significant security breach at CoinDCX, India's leading cryptocurrency exchange, resulted in the theft of $44.2 million. The incident, discovered on Friday, involved the compromise of an internal wallet used exclusively for inter-exchange trading activities, leaving customer funds untouched. This attack follows a similar, albeit larger, incident at WazirX exactly one year prior, prompting renewed concerns regarding the overall security posture of Indian cryptocurrency platforms.
The attack unfolded with deceptive subtlety. Blockchain investigator ZachXBT first identified the breach, noting a delay of approximately 17 hours before CoinDCX publicly acknowledged the incident. ZachXBT's investigation revealed the attackers' initial foray involved a single Ethereum coin laundered through Tornado Cash, a service known for obscuring the origins of cryptocurrency transactions. Subsequently, the stolen funds were strategically moved across various blockchains, including Solana and Ethereum, significantly complicating tracing efforts. CoinDCX CEO Sumit Gupta confirmed the attack swiftly, following ZachXBT's public disclosure, attributing the breach to a compromised server granting unauthorized access to an internal liquidity account.
CoinDCX's response was swift and decisive in mitigating further losses. The exchange immediately isolated the affected account, effectively freezing associated internal systems. Gupta emphatically reassured users that their funds remained secure, emphasizing the strict segregation of operational and customer accounts. The company absorbed the losses from its own treasury reserves, ensuring continued functionality for trading and rupee withdrawals. As a precautionary measure, the exchange temporarily suspended its Web3 services. Currently, CoinDCX is collaborating extensively with cybersecurity professionals and digital forensics specialists to investigate the breach thoroughly and implement enhanced security measures.
Despite the substantial financial impact, CoinDCX's prompt reaction minimized the damage and prevented any compromise of user assets. The incident, however, underscores the ongoing challenges in safeguarding cryptocurrency exchanges from sophisticated cyberattacks and highlights the critical need for robust security protocols within the Indian cryptocurrency ecosystem. The timing, a year after the WazirX hack, further emphasizes the vulnerability of these platforms and necessitates a reassessment of existing security practices. Information about this event originated from internet sources.
