CoinDCX Confirms $44 Million Hack, Assures Customer Funds Are Safe

Indian cryptocurrency exchange CoinDCX has confirmed a significant cyberattack resulting in the loss of $44 million in digital assets from an internal account. The breach occurred on July 19, marking the second major security incident involving an Indian crypto platform in less than a year, following the WazirX breach in 2024.

According to co-founders Sumit Gupta and Neeraj Khandelwal, the attacker exploited a server-side vulnerability in one of CoinDCX’s internal liquidity provisioning accounts. These accounts are typically used to maintain reserves for seamless platform transactions. While the company labeled the breach “sophisticated,” it emphasized that user funds remain unaffected, as they are stored in cold wallets, separate from operational infrastructure.

In response to the attack, CoinDCX temporarily suspended its Web3 services as a precautionary measure but confirmed that centralized trading, INR deposits, and withdrawals are still functioning normally. The exchange also stated it would cover the entire loss from its treasury, reassuring users and investors of its financial stability.

CoinDCX’s internal security teams are working with external cybersecurity experts to investigate the breach and track the stolen funds. The platform is also coordinating with a partner exchange to freeze any suspicious transfers linked to the exploit. Additionally, CoinDCX plans to launch a bug bounty program in the coming weeks to improve its security protocols.

The incident triggered user panic across social media, temporarily overwhelming CoinDCX’s servers and causing disruptions in portfolio-related services. The company has since scaled up its infrastructure to manage traffic more effectively.

Founded in 2018, CoinDCX is among India’s largest and most prominent crypto exchanges, reaching unicorn status in 2021. It is currently valued at $2.3 billion, with notable investors including B Capital, Coinbase Ventures, Bain Capital Ventures, and Polychain Capital. The platform offers a suite of services, including CoinDCX Pro for advanced traders, CoinDCX Earn for passive returns, and a Web3 mode with access to over 50,000 tokens. It also runs CoinDCX Ventures, focused on early-stage blockchain investments.

The breach has reignited concerns over crypto security and regulatory gaps in India. Although crypto trading is legal, the sector remains without a clear regulatory framework. Indian investors face a 30% tax on profits and a 1% TDS on trades, which have already affected trading volumes. Regulatory authorities, including the Financial Intelligence Unit, have issued notices to foreign exchanges in the past, but a structured oversight system is still pending.

CoinDCX’s proactive communication and promise to reimburse losses may help restore confidence, but the incident underscores the urgent need for stronger cybersecurity and clearer regulation in India’s growing digital asset ecosystem.