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In a significant security event, CoinDCX, one of India's cryptocurrency trading platforms, has reported a hacking incident that resulted in a loss of about $44 million, equivalent to nearly Rs 368 crore. The hacking occurred early on Saturday and aimed at one of the firm's internal operational accounts. Nevertheless, the Mumbai-based cryptocurrency platform reassured users that their personal funds remain completely secure. CoinDCX explained that the affected account was solely utilized for liquidity tasks with a partner exchange and did not keep any customer assets. Sumit Gupta, the Co-founder of CoinDCX, noted on social media that the breach was caused by a "sophisticated server attack". He mentioned that the losses would be fully covered by the company’s treasury reserves, which are “sufficiently healthy” to handle the financial impact.
After realizing the attack, CoinDCX temporarily halted its Web3 trading platform as a safety measure.
However, it has since resumed operations. Trading and INR withdrawals on the main cryptocurrency exchange were never interrupted, and users can keep using the platform without problems. Gupta also reassured investors not to panic, stating, "Don't panic, sell your assets," warning that such reactions can lead to poor pricing and unnecessary losses. "Let the markets stabilize. Remain calm, stay confident," he added. The company’s internal security team is now collaborating with international cybersecurity experts to examine the breach, fix vulnerabilities, and track the stolen money. CoinDCX is also planning to introduce a bug bounty program soon, which will invite ethical hackers to report any system flaws in exchange for rewards.
While this event has disturbed some users, CoinDCX has promised to provide all confirmed information once the investigation is over. "This is more than an internal issue. It serves as a reminder of the changing dangers confronting cryptocurrency platforms worldwide," Gupta stated. This breach comes at a time when cryptocurrency security is being closely examined in India. The government is anticipated to release its initial cryptocurrency policy document soon, which could introduce clearer regulations for the industry. This is not the first occasion a leading Indian exchange has experienced a hack. Last year, WazirX lost over $230 million in cryptocurrency due to a security breach linked to compromised private keys. CoinDCX asserts that it takes this event very seriously and will continue concentrating on establishing a secure and reliable cryptocurrency ecosystem in India.
