In a major security incident, the Indian crypto industry was shaken. CoinDCX, one of India’s largest cryptocurrency exchanges, confirmed a massive hack. This hack led to the loss of approximately $44 million (₹367 crore). The cyberattack occurred early Saturday morning and involved a sophisticated breach of one of the platform’s internal accounts.
What Happened in the CoinDCX Hack?
According to CoinDCX, the compromised account was used exclusively for liquidity provisioning on a partner exchange. This internal operational account was breached due to what Co-founder Sumit Gupta called a “sophisticated server attack.”
The company clarified that the hack did not impact user wallets or personal funds. It only affected a specific operational feature within the platform.
Are CoinDCX Users Affected?
CoinDCX has reassured its user base that:
- Customer funds stay safe in cold wallets (offline wallets not connected to the internet)
- The stolen funds will be covered by the company’s own treasury reserves, which are “sufficiently healthy”
- There is no need to panic sell, and users should wait for market stability
Sumit Gupta also took to social platform X (formerly Twitter) to say, “Don’t panic sell your assets. It often leads to poor prices and unnecessary losses. Let the markets settle.”
Current Status of CoinDCX Operations
Shortly after the breach:
- Web3 trading services were temporarily paused as a precautionary measure
- Services have now been fully restored, and INR withdrawals are active
- CoinDCX has not suspended regular crypto trading on the platform
Steps Taken by CoinDCX Post-Hack
To ensure user safety and data protection, CoinDCX has:
- Engaged top-tier cybersecurity partners to investigate the breach
- Initiated steps to patch all known vulnerabilities
- Collaborated with the affected partner exchange to trace the stolen assets
- Announced plans to launch a bug bounty program to identify and fix potential loopholes in the future
What Indian Crypto Investors Should Do Now
✅ Stay updated through CoinDCX’s official handles on Twitter and Telegram
✅ Avoid engaging with emails or messages from unknown sources claiming to be from CoinDCX
✅ Do not panic sell — markets tend to recover, and impulsive selling can cause more harm
✅ For added security, consider storing assets in hardware wallet
This incident highlights a growing concern over crypto exchange security in India. As digital assets gain popularity, ensuring platform security is more important than ever.
CoinDCX’s transparent communication and readiness to cover user losses are being appreciated. However, the hack is a reminder that even well-established crypto platforms are not immune to cyberattacks.
For Indian investors, staying aware, alert, and informed is key to navigating the evolving crypto space.
