CoinDCX Hacked: $44 Million Drained in Cyberattack — Days After WazirX Fails to Return User Funds
India’s second-largest crypto exchange, CoinDCX, has confirmed a major security breach where over $44 million was drained from one of its internal operational accounts. This cyberattack comes just days after WazirX users raised concerns about delayed or denied fund returns, raising further questions about the safety of Indian crypto exchanges.
What Exactly Happened?
The incident was first flagged by well-known blockchain sleuth ZachXBT, who revealed that the breach occurred through a highly sophisticated server compromise, targeting an internal wallet used specifically for liquidity provisioning on a partner exchange.
Reacting to the situation, CoinDCX’s Co-founder and CEO Sumit Gupta issued a statement on X (formerly Twitter):
“Today, one of our internal operational accounts – used only for liquidity provisioning on a partner exchange – was compromised due to a sophisticated server breach. I confirm that the CoinDCX wallets used to store customer assets are not impacted and are completely safe.”
CoinDCX further clarified that no customer funds were affected and all INR withdrawals and trading activity remain operational. The company has temporarily paused its Web3 services as a precautionary measure.
Users Safe, But Trust Shaken
While CoinDCX has assured full security of user funds, the breach adds to growing concern among Indian crypto investors — especially coming right after the WazirX controversy.
WazirX, India’s earlier leading crypto exchange, has been under fire for failing to return funds to many of its users. Several complaints have surfaced on social platforms and even in regulatory forums about frozen accounts, stuck INR withdrawals, and lack of communication.
For a detailed update on the WazirX issue, read our coverage here: WazirX User Fund Delay Issue 2025
Final Thoughts
The CoinDCX hack is a reminder that even top exchanges are not immune to breaches. Although user funds are reportedly safe, trust takes a hit every time such incidents occur. With growing regulatory pressure and increasing security threats, Indian exchanges must now double down on transparency and infrastructure security.
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