The incident stems from a failure in an automated deposit-sweeping service. While CoinDCX had instructed users to migrate to new wallets, some customers continued sending assets to legacy addresses. The exchange maintained a recovery process to credit these deposits, but an operational failure allowed funds to accumulate in compromised wallets instead of being moved to secure storage. Investigators, including blockchain researcher ZachXBT, challenged the company’s initial denials, noting that activity persisted in these addresses for months after the 2025 breach.
In section Cryptocurrency
CoinDCX Admits to $16 Million Loss Following Security Breach
Indian cryptocurrency exchange CoinDCX has acknowledged the loss of 15.99 million USDT after previously dismissing reports of a security breach. The firm confirmed that compromised wallet infrastructure, which it had supposedly retired following a major attack in July 2025, remained active and vulnerable to unauthorized fund transfers.
Blockchain analysis by Bitquery revealed that approximately 15.82 million USDT accumulated across 40 affected addresses. Within 18 hours of the October 21 incident, roughly $9.63 million was traced to intermediary wallets linked to major exchanges like Binance, OKX, and Gate. While Tether froze $2.21 million of the stolen assets, CoinDCX has not clarified whether it has reported the breach to the Financial Intelligence Unit of India or other local authorities. The exchange stated it has absorbed the losses, ensuring that current customer balances and trading systems remain unaffected while pledging to strengthen monitoring of its legacy infrastructure.
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