CoinDCX, one of India’s leading crypto exchanges, has announced a major incident involving a **sophisticated server breach** that resulted in the loss of **$44 million** from its internal liquidity accounts. This alarming breach was detected early on July 19, at 4 a.m. IST, leading to an immediate investigation into the unauthorized access that targeted the exchange’s liquidity infrastructure.
In a comprehensive report released on July 20, CoinDCX assured its users that **no customer funds were affected** by this exploit. The company committed to absorbing the entire loss through its treasury funds. Furthermore, they emphasized that user wallets are securely stored in **separate cold storage**, completely shielded from any impact arising from this incident.
To mitigate risks, CoinDCX temporarily suspended its **web3 wallet functionality**, but it has since been restored. Activities including **INR withdrawals, deposits, and trading** have continued without disruption. The exchange reassured its customer base, stating, “Your funds are 100% safe.”
In response to this breach, CoinDCX is collaborating with international cybersecurity experts, blockchain forensics firms, and Indian authorities such as **CERT-In**, in an effort to trace the stolen assets and identify the perpetrator. The exchange is also launching a **Recovery Bounty Program** to incentivize information leading to fund recovery. This proactive approach highlights CoinDCX’s commitment to security and user protection as the crypto landscape faces ongoing challenges.
The incident, reminiscent of the $230 million hack at WazirX a year prior, has raised questions about the resilience of India’s crypto infrastructure. Notably, **CoinDCX’s strong reserves** and recent proof-of-reserve disclosures reaffirm the exchange’s capability to back all customer assets remaining unaffected by previous exploitations. In contrast to many other exchanges, CoinDCX’s operations remained fully functional, avoiding the operational halts and delays experienced by others following similar security breaches.
Blockchain researcher ZachXBT played a pivotal role by early identifying the breach, analyzing the movement of assets through decentralized platforms, which is symptomatic of an increasingly complex and dangerous environment for cryptocurrency exchanges. As the situation unfolds, the community watches closely, gauging the effectiveness of these security measures and the impact they may have on user trust and the broader market.
