[10:13 PM]CoinDCX Admits $16M Crypto Theft Days After ‘False Alarm’ Denial, Total Losses Near $60M
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Key Takeaways
CoinDCX confirms a 15.99 million USDT loss after initially dismissing reports of suspicious wallet activity.
A failed automated transfer system allowed deposits to accumulate in wallets compromised during the exchange’s $44 million July 2025 hack.
Blockchain investigator ZachXBT questioned the exchange’s earlier denials and urged customers to withdraw their funds.
Indian cryptocurrency exchange CoinDCX has confirmed losing approximately $16 million after initially dismissing reports of suspicious transactions as a possible false alarm.
In an Oct. 25 statement, the exchange acknowledged that 15.99 million USDT had been lost through previously compromised wallet infrastructure following a failure in its automated fund-transfer system.
🚨 CoinDCX: Another $15.99M Loss. Another Blow to Trust in Indian Crypto.@CoinDCX is one of India's leading cryptocurrency exchanges, widely used by Indian investors to buy, sell, and trade crypto.
But its latest incident raises serious questions about security, transparency… pic.twitter.com/EQLdVSg2WW
The disclosure comes days after CEO Sumit Gupta rejected claims of a new security incident, arguing that investigators were examining addresses linked to the exchange’s July 2025 breach.
CoinDCX CEO on the recent security incident. | Source: @CoinMarketCap
That earlier attack resulted in approximately $44 million in losses, bringing the combined value of the two incidents to nearly $60 million.
CoinDCX maintains that customer balances remain protected and that the company has absorbed the latest loss.
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According to CoinDCX, the latest incident originated from operational wallets compromised during its July 2025 security breach.
Although the exchange retired those addresses, some customers continued sending cryptocurrency to them.
CoinDCX maintained an automated sweeping system that transferred incoming deposits from retired addresses to active wallets and credited customers’ accounts.
However, that system was out of service for an undisclosed period, allowing deposits to accumulate within the vulnerable infrastructure.
The exchange said it detected unusual activity on Oct. 21 and subsequently identified irregular blockchain transactions. Its investigation confirmed that approximately 15.99 million USDT had been lost.
The company has not disclosed precisely when the sweeping system failed or how the funds were ultimately accessed. The incident raises questions about why compromised deposit addresses remained able to accumulate substantial balances more than a year after being retired.
ZachXBT Challenges CoinDCX’s Initial Denial
The controversy began when blockchain investigator Darcy identified suspicious transfers involving approximately 15.99 million USDT and 5,783 TRX.
Gupta initially rejected the allegations, suggesting that attackers might be reusing previously compromised addresses.
He described the reports as sounding like a “false alarm.”
However, onchain investigator ZachXBT challenged the explanation, identifying a wallet that allegedly continued processing deposits months after the July 2025 breach.
He claimed the address had been used by a liquidity provider and had transferred funds to CoinDCX’s active infrastructure as recently as April and May 2026.
Following the exchange’s acknowledgment of operational losses, ZachXBT urged customers to withdraw their assets.
CoinDCX subsequently acknowledged that its communication could have been more proactive.
CoinDCX Faces Questions Over Nearly $60M in Losses
The latest incident exposes a security risk that extends beyond the initial compromise.
Even after vulnerable wallets are retired, automated recovery systems can still create exposure if customers continue to use outdated deposit addresses.
CoinDCX says its active wallets, trading infrastructure and withdrawal services remained operational throughout the incident.
The exchange also maintains that customer funds are held in segregated cold storage and that affected balances remain fully accounted for.
However, the company has not disclosed the duration of the transfer system failure or provided a complete explanation of how the missing assets were extracted.
With approximately $60 million lost across two incidents, CoinDCX now faces renewed scrutiny over its wallet management, internal controls, and transparency during security investigations
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Dr. Guneet Kaur is a senior editor at CCN.com and a Science Fellow at Exponential Science. She is a fintech and blockchain expert with extensive experience in digital finance education, blockchain ecosystems, and cryptocurrency markets. She has worked with global media such as Cointelegraph, as well as education and blockchain platforms, to design and lead strategic content and learning initiatives. As an educator and assessor for top-tier executive programs, she bridges real-world fintech trends with academic insight.
Dr. Kaur is also a published researcher and peer reviewer across fintech and data science journals, including Financial Innovation Journal and International Journal of Big Data Intelligence and Applications. Her work spans data-driven analysis, Web3 innovation, and technical content development. With a strong foundation in both industry and academia, she translates complex financial technologies into practical applications, empowering learners, professionals, and institutions across the rapidly evolving digital finance landscape.
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