CoinDCX Admits $16M Loss After Wallet Infrastructure Breach

iconCryptoPotato
Share
AI summary iconSummary
CoinDCX confirmed a $16 million USDT loss following a security breach in its wallet infrastructure tied to a prior incident. Initially, the exchange denied a security breach, with CEO Sumit Gupta suggesting attackers may have reused old addresses. An investigation found a deprecated wallet with unknown flaws was exploited, and a failed automated sweeping service left deposits in insecure addresses. CoinDCX covered the loss, stating active wallets and user funds were not impacted.

One of India’s leading crypto trading platforms, CoinDCX, confirmed that suspicious activity detected earlier this week ultimately led to a 15.99 million USDT loss tied to wallet infrastructure compromised during a previous security incident.

The admission comes only days after CEO Sumit Gupta publicly said the exchange’s wallets had not been breached and suggested the alarm could be linked to attackers reusing old addresses.

The company’s official October 25 update says the team noticed unusual activity on October 21 and initially prevented any impact to its active wallet and trading infrastructure.

However, they detected irregular blockchain movements shortly after and launched a deeper investigation, which determined that the activity had affected an old, deprecated operational wallet infrastructure containing previously unknown vulnerabilities.

CoinDCX also discovered that an automated sweeping service had failed for some time, and deposits sent by users to one of the deprecated addresses accumulated there instead of being transferred into the exchange’s current secure wallet infrastructure.

“This led to a loss of 15.99 million USDT, which was absorbed by the company,” adds the statement.

The exchange stressed that its active wallets, trading systems, deposits, and withdrawals continued operating normally and that customer balances were fully accounted for. Users who mistakenly deposited to deprecated addresses were still immediately credited, while a separate process was supposed to sweep those funds elsewhere.

Interestingly, this acknowledgment is particularly noteworthy given Gupta’s initial response just three days earlier. After blockchain researchers flagged roughly $16 million in suspicious transfers, the exec stated that “CoinDCX wallets are not breached” and warned against spreading false rumors.

He said at the time that the addresses involved had belonged to the exchange before its July 2025 hack and had been compromised during the incident.

The post CoinDCX Admits $16M Loss Just Days After CEO Denied Fresh Wallet Breach appeared first on CryptoPotato.

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.