India’s leading crypto exchange CoinDCX has confirmed a wallet hack, stating that one of its internal operational wallets was compromised in a targeted server breach.
The CoinDCX wallet hack came to light after blockchain sleuth ZachXBT and security firm Cyvers Alerts flagged unusual fund movements nearly 17 hours before the exchange issued a public statement.
In response, CoinDCX CEO Sumit Gupta acknowledged that an internal wallet—used exclusively for liquidity provisioning on a partner platform—was accessed due to what he described as a “sophisticated server breach.”
Gupta reassured users that all customer funds are secure in cold storage wallets, and that trading operations and INR withdrawals remain fully functional. The exchange will cover the losses using its treasury, ensuring there is no financial impact on users.
“We have identified the issue and are actively investigating with the help of our cybersecurity partners. Efforts are also underway with the partner exchange to freeze and recover the stolen assets,” Gupta added.
CoinDCX plans to introduce a bug bounty program as part of its effort to prevent future breaches.
The exchange is working closely with blockchain security experts to trace the movement of stolen funds and identify potential vulnerabilities in its infrastructure.
This incident follows a similar episode last year when WazirX, another major Indian exchange, suffered a loss of over $200 million. That breach was reportedly linked to the North Korean Lazarus Group and involved a compromised multisig wallet.
Despite the breach, CoinDCX’s proactive communication and commitment to safeguarding user funds have helped it maintain customer trust. The company emphasized that only an operational wallet was affected, and that user accounts remain untouched.
The CoinDCX wallet hack underscores the ongoing cybersecurity risks faced by crypto platforms and highlights the need for robust security protocols across the industry.