🔐 CoinDCX Faces Major Cybersecurity Breach: $44 Million Lost, But User Funds Remain Safe
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CoinDCX confirms a $44 million loss due to a security breach on an internal liquidity account, assuring users that customer funds remain unaffected.
Meta Description: Crypto exchange CoinDCX faced a $44 million security breach due to a compromised internal account. The company assures user funds remain untouched and announces new cybersecurity measures.
Focus Keyphrase: CoinDCX $44 million cyberattack
Slug: coindcx-cyberattack-july-2025
A Major Setback for CoinDCX – $44 Million Lost in Sophisticated Cyberattack
In a concerning development for India’s crypto industry, CoinDCX, one of the country’s leading cryptocurrency exchanges, fell victim to a sophisticated cyberattack on July 20, 2025. The breach resulted in a loss of approximately $44 million (Rs 380 crore) from the company’s internal treasury account.
While the incident has raised questions about crypto security in India, CoinDCX’s leadership has confirmed that no user funds were affected and that all customer services continue as usual.
What Happened During the CoinDCX Cyberattack?
According to Sumit Gupta, CEO and co-founder of CoinDCX, the breach involved a highly secure internal operational account used for managing liquidity on a partner exchange. Hackers exploited a vulnerability in their server infrastructure to gain unauthorized access.
“The total amount lost was ~$44Mn out of our treasury assets. CoinDCX Treasury will be bearing these losses,” said co-founder Neeraj Khandelwal in a statement on X (formerly Twitter).
Upon detecting unusual activity, the CoinDCX team quickly isolated the affected account, effectively preventing the attack from spreading further across the system.
Immediate Action and Recovery Plan
Following the breach, CoinDCX swiftly engaged cybersecurity experts to analyze the incident. The team is actively working on patching the vulnerability and implementing stronger safeguards.
To support the recovery process, CoinDCX plans to launch a bug bounty program, encouraging ethical hackers to identify potential weaknesses before bad actors can exploit them.
“Every security incident is a lesson. We are committed to making our platform stronger and more resilient,” said Gupta. “This is our opportunity to win the battle against cyber threats.”
User Funds Remain Safe
In an important reassurance, CoinDCX leadership emphasized that the attack did not affect any user wallets or customer assets. Trading, deposits, and INR withdrawals are fully functional.
“All customer assets are safe. The breach was limited to an internal account. Trading and INR withdrawals continue without disruption,” Khandelwal clarified.
As a precaution, trading on CoinDCX’s Web3 segment has been temporarily paused while the company ensures the integrity of its systems.
CoinDCX Takes Responsibility
CoinDCX has chosen to absorb the full financial loss from its own treasury rather than passing the burden to its users.
“We stand by our users. This incident, while unfortunate, will not affect customer holdings,” Gupta reiterated.
This proactive step is aimed at maintaining trust within the community and reinforcing the platform’s long-term vision.
Not the First Crypto Breach in India
This incident follows another high-profile attack in India’s crypto space. In July 2024, WazirX suffered a massive breach resulting in $234 million in losses. That attack forced WazirX to suspend trading and withdrawals for weeks, impacting millions of users.
Despite launching a white hat bounty program and filing an FIR, WazirX has so far only recovered $3 million, with international investigations later linking the attack to state-sponsored hackers from North Korea.
CoinDCX’s recent breach now becomes the second major crypto-related cyberattack in India within a year, signaling a rising need for enhanced cybersecurity measures across the industry.
What’s Next for CoinDCX?
While the company works on recovering the lost funds, its immediate focus remains on:
- Reinforcing internal infrastructure
- Collaborating with partners to freeze or retrieve stolen assets
- Rolling out the bug bounty program
- Transparent communication with users
The firm has promised to keep the community informed as the investigation progresses.
Conclusion
The CoinDCX cyberattack underscores the importance of cybersecurity preparedness in the crypto industry. Although $44 million in internal assets was lost, the platform’s swift response and transparent communication helped contain the situation.
With no impact on user funds and an active recovery plan in place, CoinDCX appears committed to emerging stronger from this setback.
