Key Takeaways
- CoinDCX CEO denies rumors of a Coinbase acquisition following $44 million hack.
- Reports claimed the deal would value CoinDCX at just $900M, down from $2.2 billion in 2021.
- India’s regulatory vacuum continues to push uncertainty across the crypto industry.
Just weeks after suffering a $44 million treasury hack, Indian crypto exchange CoinDCX is back in the spotlight—this time over acquisition rumors.
Local media reports on Monday claimed that U.S. giant Coinbase is in “advanced talks” to acquire CoinDCX, India’s largest crypto exchange by volume.
The reported deal would come at a steep discount, valuing CoinDCX at $900 million, down from its $2.2 billion valuation in 2021.
But CoinDCX co-founder and CEO Sumit Gupta quickly pushed back, calling the reports inaccurate.
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CoinDCX CEO: “Ignore the Rumors”
Taking to X, Gupta dismissed speculation outright:
“Ignore the rumors! CoinDCX is super focused on building for India’s crypto story and is not up for sale.”
While the CEO didn’t provide further details, his swift response suggests the company remains confident despite recent challenges.
It’s still unclear how the initial report gained traction, especially without comment from the company itself.
The report cited anonymous sources claiming the Coinbase deal was nearly finalized, a claim Gupta has now clearly disputed.
A $44M Hack, and Rising Regulatory Uncertainty
CoinDCX has been under pressure since hackers drained $44 million from its treasury wallet earlier this month.
To its credit, the exchange quickly clarified that customer funds were unaffected and that the company would absorb the loss internally.
The incident inevitably drew comparisons to the WazirX breach last year, which saw the once-dominant exchange suffer a $230 million hack and relocate to Singapore.
WazirX has yet to return missing funds to many Indian users, citing legal complexities.
CoinDCX’s rapid and transparent response earned praise, but the timing of the acquisition rumors and the broader lack of crypto regulations in India added fuel to the fire.
Still No Crypto Framework in India
Despite imposing a 30% tax on crypto gains and 1% TDS since 2022, the Indian government has failed to implement meaningful regulations.
In a recent Parliament session, the Finance Ministry admitted that it hadn’t collected any data on crypto activity over the past five years.
This policy void has forced many crypto firms to seek refuge abroad.
In contrast, jurisdictions like the UAE and Singapore have embraced Web3, offering friendlier environments for innovation and investment.
CoinDCX remains one of the few major players that are still committed to the Indian market.
However, as rumors swirl and the government stalls, the future of homegrown crypto exchanges hangs in the balance.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
