- CoinDCX announces security breach but ensures customer fund protection.
- CEO Sumit Gupta leads crisis response measures.
- Incident highlights continued security challenges in crypto exchanges.
CoinDCX, an Indian cryptocurrency exchange, confirmed a $44 million hack affecting an internal operational account used for liquidity purposes. CEO Sumit Gupta assured the community that customer funds remain unaffected and safely stored in cold wallets.
CoinDCX’s breach underlines ongoing security vulnerabilities in crypto exchanges, emphasizing the need for robust protective measures. Gupta’s transparency has garnered mixed community responses.
The incident involved a breach of CoinDCX’s internal operational account, reported by blockchain analyst ZachXBT. CoinDCX’s treasury is absorbing the loss, avoiding customer fund impact. CEO Sumit Gupta’s leadership in addressing this breach highlights his role within the Indian crypto ecosystem. He confirmed via X (formerly Twitter) that all user assets are safeguarded in cold wallets.
The hack affected on-chain assets including ETH and SOL, with some funds reportedly moved through Tornado Cash. CoinDCX’s Web3 wallet service was suspended, while its INR withdrawals remain functional. The breach’s financial implications underscore the risks associated with centralized exchanges. Historical trends demonstrate the persistent threat of hot wallet exploits analogous to this incident. Regulatory authorities have yet to comment, leaving compliance futures unclear.
“Hi everyone, At CoinDCX, we have always believed in being transparent with our community, hence I am sharing this with you directly. The platform suffered a security breach affecting one of our internal operational accounts used for liquidity on a partner exchange. No customer funds were impacted. All user assets remain safe in cold wallets. The loss is being fully absorbed by CoinDCX’s treasury. We have contained the impacted system, are working with experts, and will keep the community updated.”— Sumit Gupta, Co-founder & CEO, CoinDCX
The incident raises critical concerns about security standards in crypto exchanges. CoinDCX plans to implement a bug bounty program and collaborate with cybersecurity experts to reinforce its defenses against future attacks.
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