A Breach Targeting CoinDCX’s Infrastructure

Key Highlights:

• CoinDCX lost $44.2 million after hackers breached an internal liquidity wallet.

• Customer funds remain secure, with losses absorbed by the exchange’s reserves.

Yello Paradisers! India’s largest crypto exchange CoinDCX has confirmed on Saturday that one of its internal operational wallets was compromised in a targeted server breach, leading to losses of nearly $44.2 million. 

On-chain analyst first flagged suspicious transactions, tracing the attacker’s activity back to Tornado Cash funding before portions of the stolen assets were bridged from Solana to Ethereum.

The hacked wallet was reportedly used for liquidity provisioning on a partner exchange, rather than customer transactions. CoinDCX CEO Sumit Gupta emphasized that user funds remain safe in cold storage and trading operations, including INR withdrawals, continue uninterrupted.

Damage Control and Recovery Efforts

Gupta stated the company will cover all losses through its treasury reserves, ensuring no impact on customer balances. CoinDCX has enlisted blockchain forensics experts and cybersecurity firms to track the stolen funds, close vulnerabilities, and collaborate with partner exchanges to freeze or recover assets.

To prevent future incidents, the exchange is implementing additional security measures and plans to launch a bug bounty program to incentivize independent researchers to detect risks before attackers do.

This attack echoes the massive $200 million breach of WazirX last year, which was linked to North Korea’s Lazarus Group and a compromised multisignature wallet, underscoring the persistent risks even large exchanges face.

Why This Matters for Crypto Traders

While CoinDCX has assured that customer funds are safe, the breach raises broader concerns about operational risk in centralized exchanges, particularly in regions like India where regulation is still evolving. Such events can trigger liquidity pressures, impact token markets tied to affected platforms, and shift sentiment toward decentralized alternatives.

We’ll unpack what this breach signals for exchange security and liquidity trends for MCP News Private members, that costs you just $3 to join, with ParadiseFamilyVIP traders breaking down how such incidents ripple across markets. For real-time reactions and actionable trading strategies follow up in MCP YouTube stream channel.

Every exchange hack is a reminder: security isn’t a feature, it’s a mindset — and the traders who survive aren’t the ones who trust the loudest brand, but the ones who prepare like every hot wallet could vanish tomorrow.