CoinDCX Denies New Security Breach Following $16M Crypto Transfer Alert

Highlights:

• CoinDCX confirmed operational losses after investigators flagged nearly $16 million in suspicious cryptocurrency transfers on TRON.
• The exchange denied a new hack, saying the transactions involved old wallets compromised in July last year.
• CoinDCX said customer funds remain safe and that it absorbed losses from a failed deposit process.

Indian crypto exchange CoinDCX has confirmed operational losses after nearly $16 million in suspicious cryptocurrency transfers raised concerns about another hack. However, the exchange said the activity involved old wallet addresses compromised in July 2025, not its current wallets. It also assured users that their funds remain safe.

In an October 22 statement, CoinDCX explained that a problem with its deposit collection process had caused losses. The company said it would cover those losses without affecting customer balances.

Further update on the TQKJQ wallet On-Chain activity.

Following the July 2025 security incident, we advised users not to deposit crypto to the compromised wallet addresses. These addresses were generated earlier in 2025, were compromised during the incident, and have since been…

— CoinDCX (@CoinDCX) October 22, 2026

Blockchain Investigator Flags $16 Million in Suspicious Transfers

The concerns began when blockchain investigator Darcy reported unusual transfers linked to CoinDCX on October 21 at 11:35 p.m. UTC+8. According to Darcy, several CoinDCX-associated addresses transferred about 15.99 million USDT and 5,783.81 TRX to a wallet on the TRON blockchain.

The largest single transaction involved 15,819,002 USDT. The receiving address later sent the funds to several other wallets. Some of the money reportedly reached deposit addresses on Binance, OKX, and Gate. These movements raised concerns about a possible security breach. However, the transactions alone did not confirm that CoinDCX’s current wallets had been hacked.

CoinDCX CEO Denies New Hack but Exchange Later Confirms Losses

CoinDCX co-founder and CEO Sumit Gupta initially rejected the reports, saying the exchange’s wallets had not been breached. Gupta explained that the addresses identified by blockchain analytics platform Arkham previously belonged to CoinDCX. They were created in January 2025 and compromised during the exchange’s July 2025 security incident.

He suggested that hackers might be reusing those old addresses. Gupta also said the company had checked its current wallets and found no transfers to the addresses in question. However, CoinDCX later provided another update and acknowledged operational losses linked to those outdated wallets.

The exchange explained that some users continued sending cryptocurrency to compromised deposit addresses despite earlier warnings. CoinDCX normally collects such deposits and moves them into secure storage through a process called wallet sweeping.

According to the company, that process failed for a period, leaving some deposits exposed. CoinDCX said it discovered the issue on October 22 and absorbed the resulting losses. It also confirmed that affected users had received credit for their deposits, even though they used outdated addresses.

“Users’ funds remain completely safe,” CoinDCX stated. The exchange added that its current wallets were unaffected and trading continued normally. However, CoinDCX did not disclose the exact value of its operational losses or confirm that the entire reported $16 million had been stolen.

ZachXBT Criticizes CoinDCX Over Its Response

Blockchain investigator ZachXBT questioned CoinDCX’s handling of the incident. In an October 22 post, he alleged that a TRON deposit address remained active through a liquidity provider for about 10 months after the July 2025 breach. He said the address continued receiving user deposits and interacting with the exchange’s current hot wallets as recently as April and May 2026.

Withdraw all funds from CoinDCX if you value your assets.

Its co-founders are clowns running a circus.

They publicly and privately denied a theft of its assets occurred meaning they straight up lied or are negligently incompetent.

Later they disclosed the $16M theft and… pic.twitter.com/uEmtogPonq

— ZachXBT (@zachxbt) October 22, 2026

ZachXBT also slammed CoinDCX’s leadership for initially brushing them aside and only then accepting losses. Earlier, it was the subject of a separate $44 million security breach in July 2025, in which attackers breached an internal account used for its operations.

After the latest incident, CoinDCX has requested that its users confirm the address of the wallet while depositing funds and not send money to wallets that are outdated.