In one of the biggest crypto security breaches in India, CoinDCX, a leading cryptocurrency exchange based in Mumbai, has confirmed that it suffered a hacking attack resulting in the loss of nearly Rs 368 crore (approximately $44 million). The breach occurred early Saturday and specifically targeted one of the company’s internal operational accounts used for liquidity functions with a partner exchange. CoinDCX has since clarified that no customer assets were affected in the incident.
Sumit Gupta, Co-founder of CoinDCX, posted on social media that the attack was a result of a "sophisticated server breach" that compromised a non-custodial account, which did not hold user funds. He reassured customers that their investments remain secure and emphasized that the company’s treasury reserves are strong enough to fully absorb the loss without affecting day-to-day operations. In response to the incident, CoinDCX temporarily suspended operations on its Web3 trading platform to prevent further compromise. The platform has since resumed normal operations. Regular trading and INR withdrawals on the main exchange platform were never disrupted, allowing users to continue transactions seamlessly.
Gupta urged users not to panic sell their assets, warning that hasty decisions during market volatility often result in unnecessary losses. “Let the markets settle. Stay calm, stay confident,” he advised on X . The company is working with international cybersecurity experts to investigate the source of the breach, trace stolen funds, and fix any vulnerabilities in its systems. As part of its response, CoinDCX is preparing to launch a bug bounty program. The initiative will offer rewards to ethical hackers and cybersecurity professionals who can identify and report vulnerabilities in the platform’s infrastructure.
While the breach has alarmed some investors, CoinDCX has promised full transparency and plans to share all verified details once the ongoing investigation concludes. Gupta framed the incident as a wake-up call for the entire crypto industry, stating, “This is more than just an internal matter. It's a reminder of the evolving threats facing crypto platforms globally.” The hack comes at a critical moment for India’s digital asset space. The Indian government is expected to release its first comprehensive crypto policy paper soon, potentially bringing much-needed regulation to a rapidly expanding sector.
CoinDCX’s handling of the situation will likely serve as a case study in crisis management and cybersecurity within India’s growing crypto ecosystem. The exchange remains committed to rebuilding trust and ensuring that the security of its users remains a top priority. This incident follows a similar breach last year when WazirX, another Indian crypto exchange, lost over $230 million worth of crypto due to compromised private keys. As digital assets gain more traction among Indian investors, these security breaches underline the urgent need for robust protection mechanisms and regulatory oversight in the industry.
