CoinDCX Hacked, $44 Million Lost in Security Breach

New Delhi: In a major cybersecurity incident, Indian cryptocurrency exchange CoinDCX confirmed that it suffered a hacking attack resulting in a loss of approximately $44 million (around ?368 crore).

The breach occurred early Saturday and specifically targeted one of the company's internal operational accounts. Despite the loss, the Mumbai-based crypto platform has assured users that their personal funds remain completely secure.

In an official statement, CoinDCX clarified that the compromised account was exclusively used for liquidity operations on a partner exchange and did not hold any user assets.

Sumit Gupta, Co-founder of CoinDCX, took to social media to explain that the breach stemmed from a “sophisticated server attack.” He also stated that the entire loss would be covered through the company’s treasury reserves, which he described as “financially strong” enough to handle the setback.

As a precautionary measure, CoinDCX temporarily paused operations on its Web3 trading platform after detecting the breach. However, the platform is now fully operational again. Standard trading and INR withdrawals on the main exchange continued uninterrupted throughout the incident.

Gupta urged users not to panic or make rushed decisions. “Don’t panic sell your assets,” he posted on X (formerly Twitter), cautioning that such actions can lead to poor pricing and unnecessary losses. “Let the markets settle. Stay calm, stay confident,” he advised.

The company’s internal cybersecurity team is actively collaborating with global partners to investigate the breach, address vulnerabilities, and track the stolen funds.

CoinDCX also announced plans to launch a bug bounty programme aimed at rewarding ethical hackers for identifying and reporting potential security flaws.

Although the incident has caused concern among some users, CoinDCX has committed to full transparency and promised to release all verified findings once the investigation is complete.

“This isn’t just an internal issue. It highlights the growing security threats facing crypto platforms worldwide,” Gupta said.

The breach comes amid increased focus on crypto security in India, with the government expected to unveil its first comprehensive crypto policy paper soon—likely bringing clearer regulations to the sector.

This isn’t the first major crypto hack in India. Last year, WazirX suffered a loss exceeding $230 million following a breach involving compromised private keys.

CoinDCX has reiterated its commitment to maintaining a safe and reliable crypto ecosystem in India.

With inputs from IANS