CoinDCX, one of India’s leading cryptocurrency exchanges, disclosed that it had recently faced a sophisticated server breach that impacted its internal operational systems. The announcement came directly from CEO Sumit Gupta, who took to social media to explain the nature of the incident and assure users that their funds remain safe.
The breach targeted a specific internal operational account used for liquidity provisioning on a partner exchange. Gupta stated that this account is entirely separate from customer wallets and emphasized that the attack had no effect on the assets held by investors. The affected account was promptly isolated, and internal teams along with cybersecurity experts were immediately deployed to investigate and mitigate the situation.
CoinDCX assured its users that trading and withdrawal functionalities continue to operate normally. Despite the technical breach, the platform has maintained its core functions, offering uninterrupted services. This distinction was critical in calming investor concerns in a market already sensitive to security incidents.
The breach first came into public view through onchain researcher ZachXBT, who posted a Telegram update indicating that approximately $44.2 million had been drained from the exchange nearly 17 hours before CoinDCX’s official statement. His findings suggested the attacker used Tornado Cash for obfuscation and transferred a portion of the stolen assets from Solana to Ethereum. Although this information raised questions about communication timing, CoinDCX’s quick public acknowledgment helped minimize speculation.
Gupta acknowledged the seriousness of the issue, noting that any breach regardless of its impact on customers deserves complete transparency. He reassured users that the loss will be fully absorbed by the company’s treasury, thanks to the structural separation between internal accounts and customer holdings. This segregation of funds, he explained, acted as a buffer, limiting the exposure and preventing the breach from escalating into a larger crisis.
To further safeguard operations, CoinDCX’s security teams have collaborated with global cybersecurity partners to patch vulnerabilities and monitor asset movements on the blockchain. These efforts aim not only to reinforce the exchange’s defenses but also to track down the stolen assets and pursue recovery where possible.
The breach has reignited discussions around security in the cryptocurrency sector, particularly as the Indian market sees rising adoption of digital assets among retail and institutional investors. Regulatory clarity and security assurance have become crucial factors for users choosing where to invest and trade.
CoinDCX’s response highlights the growing maturity of India’s crypto ecosystem, where transparency and accountability are being prioritized even in crisis moments. It also reflects an industry-wide understanding that reputation is closely tied to the ability to act swiftly and communicate openly when things go wrong.
As the situation develops, Gupta has promised to keep the community informed with real-time updates. His message reinforced a broader principle that trust in crypto is earned not only through growth and innovation, but also through integrity and resilience in the face of adversity.
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