India’s largest crypto exchange CoinDCX hacked, breach limited to internal wallet

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Key Takeaways

CoinDCX suffered a loss after hackers breached an internal operational wallet.
Customer funds remain unaffected, and the exchange is working to recover stolen assets and enhance security, according to the team.

CoinDCX, one of India’s largest crypto exchanges, reported Saturday that one of its internal wallets had been compromised.

The report came shortly after on-chain investigator ZachXBT and blockchain security firm Cyvers Alerts identified suspicious fund movements that occurred roughly 17 hours before the exchange’s announcement.

India’s largest crypto exchange CoinDCX hacked, breach limited to internal wallet

“Today, one of our internal operational accounts – used only for liquidity provisioning on a partner exchange – was compromised due to a sophisticated server breach,” CoinDCX CEO Sumit Gupta said in a statement.

Gupta assured that customer funds remain secure in cold wallet storage, with all trading activities and Indian rupee withdrawals continuing to operate normally. The exchange will absorb the losses through its treasury reserves, ensuring no impact on user balances.

The company has enlisted cybersecurity partners to investigate the breach, address vulnerabilities, and track the movement of funds. CoinDCX is also working with its exchange partner to block and recover the stolen assets and plans to implement a bug bounty program.

Around this time last year, WazirX, another major crypto exchange in India, was hacked for more than $200 million, with the breach reportedly traced to North Korea’s Lazarus Group and linked to a compromised multisig wallet.