Latest news with #WazirX
International Business Times
a day ago
- Business
- International Business Times
CoinDCX Suffers $44 Million Internal Breach, Offers $11 Million Bounty in Major Crypto Security Incident
In one of the most serious cryptocurrency security incidents to date, CoinDCX has disclosed a $44 million breach involving its internal operational accounts. The crypto exchange confirmed that the loss stemmed from internal systems and did not affect user wallets or customer funds. X Sumit Gupta, CEO of CoinDCX, addressed the incident publicly, assuring users that the company had absorbed the financial hit entirely from its treasury. "No user funds were compromised. We absorbed the loss through our own treasury," he said in a statement. Details about the nature of the breach remain unclear, with the company withholding specifics about the compromised systems or whether any external attackers were identified. In response to the attack, CoinDCX has announced a recovery bounty of up to $11 million aimed at attracting white-hat hackers and blockchain investigators who can help track the stolen funds and identify those responsible. This marks the second-largest publicly known breach of a crypto exchange in India, trailing only WazirX's 2022 hack that involved losses estimated at $230 million. Industry analysts suggest the CoinDCX case highlights growing concerns over internal security lapses at crypto platforms, particularly in treasury management. Experts emphasize that internal breaches often involve compromised credentials or insufficient access controls—issues not necessarily tied to regulatory failings but rather operational weaknesses. The incident has renewed focus on the need for Indian crypto platforms to adopt real-time audits, multi-signature wallets, and tighter access protocols. Although CoinDCX has not yet confirmed the involvement of blockchain forensics firms or law enforcement, the bounty move signals an attempt to crowdsource recovery efforts. Given that no customer assets were affected, the breach is unlikely to prompt direct regulatory consequences but may accelerate calls for standardized operational security frameworks. India's crypto sector continues to operate in a grey regulatory zone, subject to tax laws but without unified cybersecurity standards. With adoption on the rise, incidents like this could push industry bodies and exchanges to double down on backend controls and investor assurance.
India.com
2 days ago
- Business
- India.com
Rs 1900000000000 lost in a year due to…., loss suffered by many including…
Indian cryptocurrency exchange CoinDCX has reported a security breach that led to the theft of $44.2 million (around Rs 378 crore). However, the company's founders took to X to reassure users that customer funds remain safe and unaffected, clarifying that the breach was limited to an internal operational account. CoinDCX Hit By USD 44.2 mn Security Breach The total exposure is being absorbed entirely by CoinDCX, using the company's treasury reserves, the company said in a First Incident Report released on Sunday. According to the report, on July 19, at 4 AM IST, CoinDCX security systems detected an incident involving unauthorised access to one of its accounts on the partner exchange, leading to a financial exposure of about USD 44 million. The incident once again puts the spotlight on mounting security threats in the highly volatile world of cryptocurrencies. Last year, crypto exchange WazirX faced a hack in India, leading to the loss of more than USD 230 million, and marking one of the biggest such heists in India. The theft had prompted a thorough examination of safety measures and eroded sentiments. CoinDCX On Attack CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal took to the social media platform X to address the situation, confirming that the attack was the result of a sophisticated server breach, targeting an internal wallet, not the ones holding customer assets. The incident was first flagged by blockchain investigator ZachXBT, following which the exchange made the disclosure public. 'Today, one of our internal operational accounts — used only for liquidity provisioning on a partner exchange — was compromised due to a sophisticated server breach. I confirm that the CoinDCX wallets used to store customer assets are not impacted and are completely safe. This won't cause any loss to our customers. CoinDCX will be bearing the full amount,' Gupta said. 'The total amount lost was USD 44Mn out of our treasury assets. Coindcx Treasury will be bearing these losses,' Khandelwal wrote. Affected infrastructure has been completely isolated, and CoinDCX operations continue to run normally, the company said. Risk In Crypto Currency Investment Crypto thefts in 2025 had already crossed USD 2.17 billion before last week's USD 44 million CoinDCX hack, underlining relentless cyber threat escalation in the digital currency world, according to the latest data. Blockchain analytics platform Chainalysis' 2025 crypto crime mid-year update says that over USD 2.17 billion was stolen from cryptocurrency services so far in 2025, and 'this year is more devastating than the entirety of 2024'. By the end of June 2025, 17 per cent more value had been stolen year-to-date (YTD) than in 2022, previously the worst year on record. The USD 1.5 billion hack of ByBit, the largest single hack in crypto history, accounts for the majority of service losses. So far in 2025, significant concentrations of stolen fund victims have emerged in the US, Germany, Russia, Canada, Japan, Indonesia, and South Korea, it said. 'Regionally, Eastern Europe, MENA, and CSAO (Central and Southern Asia and Oceania) saw the most rapid H1 2024 to H1 2025 growth in victim totals,' it said. (With Inputs From PTI)
Mint
2 days ago
- Business
- Mint
Crypto Hack: With $44 million theft at CoinDCX, should investors be wary of investing in cryptos?
Almost one year after $234.9 million was lost to a hack at WazirX on July 18, 2024, another crypto exchange CoinDCX has encountered a massive hack leading to loss of $44 million. This has reportedly given a considerable setback to the new-age investors, some of whom had pinned their hopes on earning good returns amid skyrocketing crypto prices. In the past one month alone, bitcoin prices have risen by around 14 percent to touch $1,18,000. Meanwhile, CoinDCX's Sumit Gupta – after the hack -- wrote on X that customers' funds are 100 percent safe as all user assets are stored in segregated cold wallets. The company further claimed that its reserves are absorbing all losses. After the news spread in the market, the exchange received a huge number of withdrawal requests. In just one day, this crypto exchange received 31,462 requests -- out of which 98.09 percent (30,862) requests have already been processed and the remaining are set to be done in the next three days, Gupta wrote on the micro-blogging site. Most investors wrote positive comments on Gupta's post where he gave an update about INR withdrawals, whereas a few investors expressed discontent for having to exit their position during a bull run such as the post embedded here. CoinDCX on Monday also announced its recovery bounty programme wherein it said that 25 percent of any recovered funds will be rewarded to individuals who can help trace and retrieve the stolen crypto. 'The exposure was from our own reserves, and we have already absorbed it through our corporate treasury. More than recovering the stolen funds, what is important for us is to identify and catch the attackers because such things should not happen again,' wrote Sumit Gupta, co-founder, Coin DCX on X platform. Industry experts believe that these incidents should not shake the faith of investors in the asset class per se. 'Crypto is a fast-growing asset class and choosing how to hold it via self-custody or centralised exchanges (CEXs), is crucial. While self-custody offers control, it also carries higher risks such as key mismanagement or phishing. For investors, the question is not whether it is safe, but it should be whether I am investing through platforms which take safety seriously,' says Edul Patel, CEO and Co-founder of Mudrex. 'Exchanges are becoming more secure and accountable. Platforms such as ByBit and CoinDCX which recently suffered incidents, have shown this by shielding users from losses using internal treasuries, protection funds and distribution of user assets across multiple cold and hot wallets, adds Patel. Some wealth advisors, meanwhile, have a different take on this. 'Some investors want to try new and fancy financial products, and it may lead to investing in unregulated products that carry huge risk. Cryptocurrency is one such product. Its value can change constantly and dramatically at any point in time. If the value goes down, there's no guarantee that it will rise again and that's why an unstable investment due to high investor losses from scams, hacks, bugs, and volatility in the recent couple of years,' says Preeti Zende, a Sebi-registered investment advisor and founder of Apna Dhan Financial Services. 'So, it is better not to burn fingers in such risky and unregulated products and stick with old, trusted products for wealth creation. To achieve long-term sustainable wealth in the long run, investors require a simple investment strategy,' she adds. For all personal finance updates, visit here
Time of India
2 days ago
- Business
- Time of India
CoinDCX offers $11 million bounty to recover $44 million
File photo BENGALURU: CoinDCX confirmed a $44 million security breach involving one of its internal operational accounts, marking the second-largest publicly known crypto hack at an Indian exchange. The company launched a recovery bounty of up to $11 million to trace the funds and identify those responsible. While the loss was limited to CoinDCX's own treasury and customer assets remained unaffected, the incident reignited scrutiny over operational security across Indian crypto platforms. 'No customer funds were affected, and we absorbed the loss through our own treasury,' CoinDCX CEO Sumit Gupta said. This is the second major crypto security incident involving an Indian exchange, following WazirX's 2022 disclosure of a $230 million exploit. Previous breaches at platforms such as BuyUcoin also raised concerns around security architecture and incident preparedness. In each case, the underlying causes were platform-specific operational failures—not regulatory gaps. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
3 days ago
- Business
- Time of India
Crypto under fire again: CoinDCX hack revives questions on platform security
BENGALURU: CoinDCX has confirmed a $44 million security breach involving one of its internal operational accounts, marking the second-largest publicly known crypto hack at an Indian exchange. Tired of too many ads? go ad free now The company has launched a recovery bounty of up to $11 million to trace the funds and identify those responsible. While the loss was limited to CoinDCX's own treasury and customer assets remain unaffected, the incident has reignited scrutiny over operational security across Indian crypto platforms. This is the second major crypto security incident involving an Indian exchange, following WazirX's 2022 disclosure of a $230 million exploit. Previous breaches at platforms such as BuyUcoin have also raised concerns around security architecture and incident preparedness. In each case, the underlying causes have been platform-specific operational failures – not regulatory gaps. However, the lack of a formal framework for breach disclosures, audit requirements or incident resolution protocols has contributed to the industry's uneven response. While exchanges are now required to register with the Financial Intelligence Unit (FIU) and enforce KYC norms, broader rules on infrastructure integrity, key management or hot wallet exposure remain absent. 'Regulatory clarity is absolutely urgent, especially for builders working at the infrastructure and protocol layers,' said Aishwary Gupta, Global Head of Payments at Polygon Labs, the blockchain developer that recently partnered with Reliance to launch JioCoin. 'We need a regime where good-faith innovation is protected, not penalised,' he added. In response to this policy vacuum, Hashed Emergent and Black Dot Public Policy Advisors on Monday released a discussion paper called the COINS Act, aimed at jumpstarting dialogue around crypto regulation. The proposal, supported by Bharat Web3 Association members, suggested voluntary registration, sandbox environments for startups and clearer enforcement norms.
