CoinDCX Admits Losses From Old Wallet Deposits, Denies Breach Of Active Wallets

Crypto exchange CoinDCX has acknowledged operational losses after a process meant to secure deposits sent to old, compromised wallet addresses failed, while denying a breach of its active wallets. In a post on X, the exchange said some users continued depositing crypto into addresses compromised during the July 2025 security incident, despite notifications asking them to use updated addresses available on its app and website. CoinDCX said it regularly “sweeps” deposits sent to these discontinued addresses, moving the funds so they can be accounted for and secured. However, this process failed for a period, with the failure identified on the morning of its update. “This failure led to some operational losses, which were absorbed by CoinDCX,” the exchange said. The company did not disclose the amount lost or how long the process had failed. It said all affected users’ crypto deposits had been credited, including those sent to the discontinued addresses. CoinDCX maintained that customer assets remained in segregated cold wallets and that its current central and user wallet addresses were unaffected. It also said no funds from active wallets had been compromised and that trading continued as usual. Denial Followed By Disclosure The update followed an earlier statement in which CoinDCX described claims circulating on X about certain wallet addresses and transactions as misleading. Among these was a post by blockchain investigator Darcy, who flagged transfers of around $16 Mn worth of cryptocurrency from wallets linked to CoinDCX to another wallet. According to the investigator, the funds were subsequently split across multiple addresses and routed to deposit addresses on exchanges including Binance, OKX, and Gate. CoinDCX has not confirmed whether these amounts correspond to the operational losses it disclosed. In its initial response, the exchange said the flagged addresses had been created in January 2025, compromised during the July 2025 hack, and had not been used by CoinDCX since. Cofounder and CEO Sumit Gupta separately denied a fresh wallet breach, saying hackers appeared to be reusing the compromised addresses. Gupta said the exchange had checked its current central and user wallet addresses and found that none had transferred funds to the old addresses in question. He added that the team was investigating further. The subsequent company update acknowledged that users had continued sending deposits to the discontinued addresses and that its process for securing those deposits had failed. CoinDCX had lost around $44 Mn in a cyberattack in July 2025, when an internal operational account used to provide liquidity on a partner exchange was compromised. At the time, the exchange said the stolen assets belonged to its treasury, customer funds were unaffected, and it would absorb the losses. It subsequently launched a recovery bounty programme to help trace and recover the stolen assets.

Source: Inc42 (India)