- CoinDCX reports $44.2M security breach impact.
- Customer funds remain unaffected and safe.
- Funds stolen from internal operational wallet on Solana.
CoinDCX’s $44.2 million breach underscores vulnerabilities in centralized exchanges, prompting reassurances about customer fund safety and impacting market perceptions.
Sumit Gupta, CEO of CoinDCX, confirmed a security breach resulting in the loss of approximately $44.2 million in stablecoins USDC and USDT. The breach implicated an internal operational account used for liquidity on a partner exchange, but he assured that user funds remain safe in cold wallets.
Sumit Gupta, Co-founder and CEO, CoinDCX, – “Hi everyone, At CoinDCX, we have always believed in being transparent with our community, hence I am sharing this with you directly” and explained that a security breach impacted an internal operational account used for liquidity on a partner exchange. He assured, “No customer funds were impacted. All user assets remain safe in cold wallets”: source
The attack was initiated by an unknown entity funding their wallet with 1 ETH via Tornado Cash, adding complexity to tracing efforts. Gupta stated that the affected account was quickly contained and losses will be absorbed by the company’s treasury, not passed to users. CoinDCX is enhancing its security in collaboration with cybersecurity experts and introduced a bug bounty program.
The incident’s financial impact involves $44.2 million primarily moved from Solana to Ethereum post-breach. However, market functionality persists, with trading and INR withdrawals operational. Community response remains mixed, with some praising transparency, while others criticize delayed disclosure.
Experts note parallels to previous incidents, particularly the WazirX hack, highlighting the continuous risk to exchanges holding significant operational liquidity. With ongoing scrutiny, CoinDCX investigates the breach’s origins and implements procedures to mitigate future risks.
While regulatory bodies have yet to comment, ongoing investigations could influence future crypto policy and security measures. CoinDCX’s proactive steps in response suggest a commitment to strengthen security infrastructure and maintain user trust.
