CoinDCX hacked
Indian cryptocurrency exchange suffers security breach worth Rs 378 crore, User Funds Safe or not?
On Saturday 19th-July 2025, Indian cryptocurrency platform CoinDCX suffered a major security breach and resulting in the theft of approximately US$44.2 million (around Rs 378 crore).
According to official statements the breach was limited to an internal account and did not affect customer funds.
The CoinDCX hack is one of the biggest cryptocurrency thefts to have happened in India in recent times.
However, the company’s decision to take full losses and safeguard users’ funds has helped restore trust to some extent.
Also Read: ITR Filing Deadline Extended: CBDT New Date and ITR 2025-26 Updates
CoinDCX hacked | What Happened?
On 19th-July-2025 at around 4 AM IST CoinDCX’s security systems noticed suspicious activity. An internal operational account used only for providing liquidity on a partner exchange was accessed without permission.
This led to the loss of a large amount of digital assets worth of 378 Crore in Indian Currency.
Basic highlights are
- Total stolen: USD 44.2 million
- Customer funds: Safe and not affected
- Source of attack: Internal wallet on a partner platform
- Breach occurred on: 19th July-2025, Early in the morning
CoinDCX took quick action to isolate the affected systems and prevent further damage.
CoinDCX hacked | Who Is responsible for the Loss?
Company co-founders Sumit Gupta and Neeraj Khandelwal confirmed that the breach was caused by a sophisticated server attack. The attackers were able to access an internal wallet but not the wallet containing customers’ money.
CoinDCX made it clear that the entire financial loss is being covered by its own reserves. The company’s treasury assets will absorb the full damage and ensuring that customer accounts remain safe.
Sumit Gupta said on X – “CoinDCX wallets storing customer assets are completely safe. The company will bear the full loss of $44 million”.
What was the technical and financial impact?
As the news spread many users started logging into the app to check their balance. The sudden increase in activity caused delays in CoinDCX’s systems.
The portfolio APIs showing balances and transaction history were slow and down for several hours.
Later CoinDCX confirmed that the issue had been fixed. All systems were restored and trading, deposits and withdrawals were back to normal.
CoinDCX hacked | steps taken after the breach
CoinDCX shared a detailed report called the First Incident Report on 21st-July 25. The company outlined steps taken to investigate the breach and prevent future attacks.
Key actions include-
- Isolating the compromised systems
- Working with two global cyber security firms for a full forensic investigation
- Informing CERT-In (Indian Computer Emergency Response Team)
- Restoring full services across the platform
All trading services including INR deposits and withdrawals remain operational
Withdrawals limits set
- INR withdrawals under Rs 5 lakh: Processed within 5 hours
- INR withdrawals over Rs 5 lakh: Processed within 72 hours
CoinDCX hacked | public reaction
This news created a stir on social media. Some people praised CoinDCX for taking full responsibility for the loss and safety of customers’ money.
At the same time, some criticized the platform for taking 17 hours to make the breach public.
One user wrote on X – “CoinDCX silent for 17 hours? That’s more suspense than a thriller!”
Another comment was triggered on X: “Glad to see CoinDCX covering the loss from its own reserves. That builds trust in the platform”.
What are the Crypto Security standards in India
This incident has once again raised questions about crypto security in India.
Just last year WazirX, another Indian crypto exchange faced a major hack and lost over USD 230 million.
Such breaches highlight the importance of strong cyber security in the world of digital assets.
While CoinDCX’s quick response has helped limit the damage and the event shows how crucial it is for crypto companies to invest in top level security measures and be transparent with their communities.
All I’ll say is this – As the crypto space grows, so do the risks. Regular audits, strong server security and immediate response plans are now more important than ever for crypto platforms.
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