CoinDCX Internal Account Breach Results in $44.2 Million Loss
We begin with a shocking event that hit the Indian cryptocurrency exchange CoinDCX hard. On a Friday, hackers stole $44 million from an internal account, a loss later confirmed as $44.2 million by expert ZachXBT. CEO Sumit Gupta shared this news on Saturday, assuring users that their funds stayed safe in cold wallets.
This breach targeted an account used to manage liquidity, not user savings. We note that CoinDCX acted fast, promising to cover the loss with its own reserves. The attack, described as a sophisticated server breach, happened exactly one year after a larger $235 million hack struck rival WazirX.
What Happened During the CoinDCX Hack
We learned that hackers pulled off a clever attack on CoinDCX. They broke into a server managing an internal account for liquidity. This breach led to a $44.2 million loss, a big hit for the exchange.
The attackers funded their wallet with 1 Ether using Tornado Cash, a tool that hides transaction trails. Some stolen funds then moved from Solana to Ethereum networks. We see this as a sign of a planned and complex theft.

How CoinDCX Kept User Funds Safe
We find comfort in knowing that CoinDCX protected user money during this hack. All user funds sit in cold wallets, which stay offline and out of reach from hackers. Only the internal account took the hit.
The exchange chose to use its treasury reserves to cover the $44.2 million loss. We admire this move, as it shows CoinDCX values its users. No one lost their savings, a key point that sets this event apart.
The Attack Explained Step by Step
We now look closer at how this breach unfolded for CoinDCX. The hackers started with a server attack, targeting a specific internal account. This account handled liquidity, not user deposits.
Next, they used Tornado Cash to send 1 Ether to their wallet, masking their moves. After stealing the funds, they bridged some from Solana to Ethereum, making it harder to track. We see this as a bold and technical strike.
CoinDCX Response to the Breach
We observed CoinDCX act with speed after the hack. The exchange teamed up with cybersecurity experts to chase the stolen $44.2 million. They also reached out to other exchanges for help in recovery efforts.
To prevent future attacks, CoinDCX plans a bug bounty program. This invites ethical hackers to find weak spots for rewards. We think this shows a strong commitment to safety.
Comparing CoinDCX and WazirX Hacks
We noticed a pattern when comparing this to the WazirX hack. Exactly one year ago, WazirX lost $235 million in a massive breach. The CoinDCX loss of $44.2 million looks smaller by contrast.
WazirX struggled more with recovery, while CoinDCX shielded users by absorbing the loss. We see this as a key difference. Both events remind us that crypto exchanges face real risks.
Key Details in a Table
We put the main facts in a table for clarity:

This table sums up what we know about the CoinDCX hack.
Why This Matters for Crypto Users
We believe this hack affects how people view CoinDCX and crypto overall. A $44.2 million theft grabs attention and raises questions about safety. Yet, the exchange’s response might calm some fears.
Users care about their money staying secure. We see CoinDCX proving it can handle a crisis without hurting its customers. This could shape trust in the platform moving forward.
Final Thoughts
We wrap up by reflecting on this CoinDCX breach. The $44.2 million loss stings, but the exchange’s quick action stands out. They protected users and took responsibility with their reserves.
Looking ahead, we see CoinDCX strengthening its defenses and rebuilding trust.
The risks and rewards of crypto exchanges. We hope CoinDCX continues to prioritize safety as it grows.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.