CoinDCX Hacked for $44 Million After Server Breach

Highlights:

• CoinDCX was hacked and lost $44 million via an internal server breach.
• The attack did not affect any customer wallets or funds.
• Recovery efforts include a bug bounty and a cybersecurity investigation.

One of the leading cryptocurrency exchanges in India, CoinDCX, lost $44 million following a significant server hack. The breach happened on Saturday morning and targeted an internal account that was used in providing liquidity. The hacked wallet did not interact with the assets of the users but with the partner exchange.

How the Exploit Unfolded

Blockchain analyst ZachXBT was able to detect the break about 17 hours after it began. A mixing service sent 1 ETH to the wallet of the attacker, then transferred money using Solana to Ethereum. CoinDCX responded within minutes of being notified, where they isolated the affected system.

The hacker was able to bypass server-level security, obtaining access to a particular working account only. The internal team of CoinDCX was quick to prevent additional loss. They also incorporated the services of cybersecurity experts to trace the stolen money and seal any loopholes.

The investigators found that only internal reserves were affected. The exchange confirmed that the amount in its reserves is more than the stolen amount. An investigation is still underway to understand the access point of the attacker.

Steps Taken After the CoinDCX Hacked Incident

Following the hack, CoinDCX partnered with its exchange partner to aid in blocking and recovering stolen funds, CoinDCX CEO Sumit Gupta stated. There is also a planned bug bounty program to reward ethical hackers for reporting flaws in the system. Such a step is expected to increase the security of the platform in the long term.

Hi everyone,

At @CoinDCX, we have always believed in being transparent with our community, hence I am sharing this with you directly.

Today, one of our internal operational accounts – used only for liquidity provisioning on a partner exchange – was compromised due to a… pic.twitter.com/L1kZhjKAxQ

— Sumit Gupta (CoinDCX) (@smtgpt) July 19, 2025

CoinDCX assured the community that its treasury reserves are robust enough to sustain the stolen 44 million. In its June statement of proof of reserves, it had an aggregate holding of $584.2 million. The exchange also has approximately 20 million registered users.

No wallets and trading balances of the customers were compromised during the attack. CoinDCX assured that the customers could trade and withdraw INR without any interruption. Trading in Web3 was temporarily halted to step up precautions and returned to normal soon after the problem was isolated. The exchange reminded users to stay calm and avoid panic selling, saying that moves driven by fear may result in losses.

Crypto Security Still Under Pressure

The hack causes major concerns about crypto infrastructure security in India and beyond. CoinDCX has now become the second major Indian exchange to have been hit in a year. In July 2024, WazirX was hacked with a similar security breach and lost $230 million. North Korea’s hackers were associated with that attack.

The hack of CoinDCX is still under investigation, and no organization has yet been identified as the perpetrator. However, the similarities between both cases have brought about concerns about the security preparedness of centralized platforms. There have also been other recent reports of global crypto hacks. Iranian exchange Nobitex was hit with a $100 million hack, and Resupply Protocol platform experienced a loss of $9.5 million. In both scenarios, hackers exploited the vulnerabilities of the platforms.