India’s largest crypto exchange absorbs $16 million loss from internal process failure tied to retired wallet The Mumbai-based exchange initially dismissed reports of suspicious outflows as a false alarm.
It now says it lost $16 million and will absorb the loss. – CoinDCX said it absorbed a $15.99 million loss after a service failed to move customer deposits from a retired wallet compromised in a 2025 security breach. – The exchange initially dismissed reports of suspicious outflows but later acknowledged that users had continued sending funds to the deprecated addresses. – CoinDCX said customers’ balances, active wallets and trading systems were unaffected, though it conceded that it could have disclosed the incident more quickly
CoinDCX, India’s largest crypto exchange, says it has absorbed a $16 million loss after an internal process failed to move customer deposits out of a retired wallet. It all started last week, when blockchain sleuths flagged about $16 million in suspicious outflows from wallets linked to the Mumbai-based exchange. CoinDCX was quick to dismiss the reports, with CEO Sumit Gupta calling it a false alarm on X.
A spokesperson told CoinDesk that the addresses cited by the sleuths were old ones, created in January 2025 and compromised in the July 2025 hack, which cost the exchange about $44 million, and that CoinDCX had not used them since. In essence, the exchange said the activity did not have any connection with CoinDCX. But ZachXBT, a well-known on-chain investigator, said at least one of those addresses, labeled TQKJQ, was in use by a liquidity provider and swept user deposits to CoinDCX’s current public hot wallet as recently as April and May 2026.