Indian crypto exchange CoinDCX says it lost over $44 million following a hack
The Mumbai-based firm has disclosed that hackers compromised and drained all the funds from one of its internal operational accounts that is used for liquidity provisioning, which helps minimise slippage and ensure smoother trading. Ethical hacker ZachXBT was the first to flag the breach, and said that he uncovered the incident 17 hours after it happened.
CoinDCX has emphasised that the wallets used to store customer assets were not impacted by the hack. INR withdrawals and other trading activity remain operational. The centralised crypto exchange initially paused its Web3 mode feature as a precautionary measure. A few hours later, it restored the in-app feature that gives users access to over 50,000 DeFi (decentralised finance) tokens.
'The incident was quickly contained by isolating the affected operational account. Since our operational accounts are segregated from customer wallets, the exposure is only limited to this specific account and is being fully absorbed by us – from our own treasury reserves,' Sumit Gupta, Co-founder and CEO, CoinDCX said on X
'Our internal security and operations teams have been working through the day along with leading cybersecurity partners to investigate the matter, patch any vulnerabilities and trace the movement of funds,' he added.
CoinDCX also assured that its reserves are sufficient to fully cover the losses from the hack. 'This won't cause any loss to any of our customers and CoinDCX will be bearing the full amount from our treasury reserves, which is sufficiently healthy to cover up for this amount,' Gupta said.
Exactly one year ago to the day, hackers breached another Indian crypto exchange, WazirX, and made away with over $230 million in crypto assets.
The crypto industry's vulnerability to such incidents remains a pressing concern as it could undermine investor confidence. It could also fuel further scepticism of cryptocurrency by regulators in countries like India, where the sector is still under evaluation.
The CoinDCX hack adds to what is already shaping up to be the worst year-to-date on record for crypto thefts. Hackers have stolen more than $2 billion in crypto during the first half of 2025, according to new data from crypto analysis firm Chainalysis.
'I understand incidents like this can be unsettling – even when customer assets are unaffected. That's why I am sharing this incident with you with full transparency,' Gupta said on X.
On what to do next, he said that CoinDCX will be collaborating with its exchange partner to block and recover assets. It will also be launching a bug bounty programme soon.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
10 minutes ago
- New Indian Express
Alleging irregularities in flower market leasing, AIADMK councillors walk out of Salem corpn meeting
SALEM: Alleging irregularities in the leasing process of the VOC Flower Market complex, AIADMK councillors led by party's leader of opposition in the council N Yadavamoorthy walked out of the Salem City Municipal Corporation's monthly council meeting, on Friday. The meeting was chaired by Mayor A Ramachandran, along with Deputy Mayor M Saradha Devi and Salem City Corporation Commissioner M Elangovan. The AIADMK councillors strongly opposed the corporation's move to lease the flower market shops directly to vendors. The complex, developed under the Smart City project under the AIADMK regime, was originally leased to a private party. After the private party withdrew from the contract, the corporation invited fresh tenders and decided to handle the leasing by itself. AIADMK councillors said the corporation is now demanding advance payments of up to Rs 8 lakh and monthly rents of up to Rs 20,000 from vendors. They argued that such high costs would be unaffordable for small flower sellers who have been operating at the market for decades.
Economic Times
10 minutes ago
- Economic Times
India's edge data centre capacity projected to triple to 200-210 MW by 2027: ICRA
Agencies Representative image. India's edge data centre capacity is expected to expand significantly to 200-210 Megawatt (MW) by 2027 from 60-70 MW in 2024, marking a 3x increase, driven by the proliferation of emerging technologies, according to the rating agency ICRA. Edge data centres are smaller, decentralised facilities located closer to end-users and devices. Unlike traditional data centres, which are typically large and centralised, edge data centres enable real-time data processing with minimal data centre capacity (including capacity held by cloud operators) is estimated at around 50 Gigawatts (GW) as of December 2024, of which about 10 per cent is dedicated to edge data US commands over 44 per cent of worldwide edge data centre capacity, followed by Europe, the Middle East and Africa (the EMEA) region at 32 per cent and Asia Pacific (the APAC) region at 24 per cent. India is a relatively new entrant in the edge data centre market. The current edge data centre capacity as a percentage of India's total data centre capacity stands at around 5 per cent. Further, excluding the edge data centre capacity used for captive purposes by one of the large data centre operators, the current edge data centre capacity as a percentage of total capacity is as low as 1 per more insights, Anupama Reddy, Vice President and Co-Group Head, Corporate Ratings, ICRA, said, "Edge data centres differ from traditional data centres in multiple parameters like size, location, scale, time taken to construct, capex cost per MW, distance from end user, etc.""In the Indian context, traditional data centres and edge data centres are complementary pillars of digital infrastructure. With the expanding cloud ecosystem of India, traditional data centres will keep fuelling mass-scale computing, artificial intelligence (AI), and cloud workloads, and edge data centres will facilitate real-time processing and localised services."Reddy said that traditional and edge data centres are expected to operate in the hub-and-spoke model to enhance efficiencies across sectors such as healthcare, banking, agriculture, Defence, and manufacturing, the promising outlook, some of the key challenges for edge data centres include security vulnerabilities due to remote deployments (majorly in tier II and tier III cities), rapid technological changes that risk obsolescence, a shortage of skilled professionals in remote areas, and interoperability issues with traditional data centres."The rentals for edge data centres are anticipated to be on the higher side compared to traditional data centres, as they will be catering primarily to retail customers against enterprise/hyperscale customers for traditional data centres. Moreover, the relatively higher capex cost per MW for edge data centre compared to a traditional data centre is expected to be compensated by higher rentals. Established DC players and entities like RailTel, Telcom operators are likely to lead the edge data centre expansion in India," Reddy added.
Economic Times
10 minutes ago
- Economic Times
Valuations ahead of earnings — Time for bottom-up value picks: Shrikant Chouhan
Q) The second half of 2025 started on a volatile note. How are you looking at the markets? One of the reasons could be FIIs selling, which continues in July. Live Events Q) IPOs have picked up recently, but EY report highlighted that Indian IPO activity in the first half of 2025 recorded 108 deals raising US$4.6b, demonstrating market resilience despite a 30% decline in transactions. Q) What is the initial sense you are picking up from the June quarter results, which have started to come out? Q) Is the current equity market rally largely liquidity-driven, or are there sufficient earnings fundamentals to back the optimism? Q) SIPs crossed Rs27K – what does it talk about the retail investor behaviour change? Q) Where are the pockets of opportunities coming from? Q) Where is the smart money moving? Q) How should one play the small & midcap space? (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel In this edition of ETMarkets Smart Talk, we caught up with Shrikant Chouhan , Head of Equity Research at Kotak Securities , to decode the current market setup amid rising volatility and persistent FII Indian equities trade in a tight range with global uncertainties weighing on sentiment, Chouhan emphasizes the importance of bottom-up, value-driven investing , especially in a landscape where valuations appear to be running ahead of earnings He shares insights on retail investor behaviour, IPO momentum, sectoral opportunities, and why smart money is gravitating toward hospitals, digital-first firms, and capital market-linked businesses. Edited Excerpts –Markets are trading in a tight range, and we believe they will remain directionless until clarity emerges on tariff-related announcements from Mr. Trump. Aggressive buying is absent, as investors are selectively hunting for continue to sell, largely due to stretched valuations and the attractiveness of the US bond market. Additionally, a weaker currency—hovering around 86—adds to the negative sentiment for foreign enthusiasm is being driven by retail flows and QIP money, but sustainability depends on post-listing performance. Value-backed companies will still find takers, even if broader activity moderates.Q1FY26 results so far lack surprises, coming in largely in line or slightly below are witnessing a classic bottom-up approach in the market, supported by strong domestic macro investors are on the right path—sticking to a disciplined strategy that aligns with long-term wealth creation. This shift in behavior seems structural, not a market where valuations run ahead of earnings, the only prudent strategy is selective, bottom-up, and value-driven capital market-linked businesses, and digital-first companies appear to be in the spotlight, steadily attracting fresh investments from informed investors and institutions selection demands caution. Before investing, give top priority to corporate governance, analyze the P&L and balance sheet, and assess the company's market share and business model in depth.: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
