Major Security Incident at Indian Exchange

CoinDCX, one of India's leading cryptocurrency exchanges, confirmed a 【$44 million】 security breach on July 19 through what CEO Sumit Gupta described as a "sophisticated server compromise." The attack targeted an internal account used for liquidity management between exchanges, marking the second major crypto platform hack in India within a year.

User Funds Remain Protected

——No customer assets were affected—— according to Gupta's statement on social media platform X. The exchange isolated the compromised operational account immediately, with losses being covered entirely from company reserves. This containment strategy highlights the growing importance of segregating operational and customer wallets in exchange security protocols.

Attack Methodology Revealed

Blockchain investigator ZachXBT traced the attack vector showing the hacker initially received 1 ETH from privacy tool Tornado Cash before bridging stolen funds across blockchain networks. The movement pattern suggests possible prior knowledge of CoinDCX's internal systems, with the breach occurring exactly one year after rival exchange WazirX suffered a 【$235 million】 hack.

Global Crypto Security Landscape

The incident adds to a troubling trend in digital asset security, coming weeks after Iranian exchange Nobitex lost 【$100 million】 in a politically-motivated attack. Interestingly, decentralized exchange GMX V1 recovered its 【$40 million】 July loss when the hacker returned funds for a white hat bounty, demonstrating varied outcomes in crypto security incidents.

Industry Response and Best Practices

Cybersecurity experts emphasize three critical protections for exchanges: multi-signature wallets, time-delayed transactions for large transfers, and regular penetration testing. As Gupta noted, "This incident reinforces our commitment to enhancing security infrastructure," a sentiment echoed across the industry following 【$2.5 billion】 in crypto losses during 2025's first half.

Ongoing Investigations

CoinDCX has engaged blockchain forensic teams while maintaining normal platform operations. The exchange's handling of the crisis—transparent communication and financial absorption of losses—sets a notable precedent in an industry where many collapses followed security breaches. Authorities continue tracking the stolen funds' movement across blockchain networks.