Crypto Exchange CoinDCX Hack: $44 Million Stolen in Server Breach

Crypto Exchange CoinDCX Hack Raises Alarms Over Server Security

In a significant security breach, Indian cryptocurrency platform CoinDCX, lost a whopping $44 million after a server hack. The Crypto Exchange CoinDCX Hack occurred early on Saturday, July 19, and was initially reported by blockchain security company Cyvers.

Source: Sumit Gupta

What Happened?

The organisaton announced that a part of one of its internal accounts, which is utilized for offering liquidity on a partner exchange, had been attacked. 

The account was linked to the server of platform, which was compromised by phishers. It was not a direct attack on user accounts but on an internal system that is utilized for trading between platforms.

Source: Wu Blockchain

In this server breach, the phishers managed to steal a significant portion of cryptocurrency funds, approximately $44.2 million. The stolen digital funds were transferred from Solana to Ethereum, and the cryptocurrency mixer Tornado Cash was utilized by the attacker to conceal the transaction history.

No Customer Funds Affected

Sumit Gupta, the CEO of the organisation, posted a public statement on social media platform X after crypto exchange CoinDCX hack. He assured all users that no customer funds were compromised due to the breach. 

All user funds are kept in secure cold wallets, which are never connected to the internet and hence remained untouched.

Gupta mentioned that, "We have implemented all measures to secure our customers. Trading and INR withdrawals are going on as usual. You can withdraw your INR at any time with no caps."

Full Operations Continue

In spite of the Crypto Exchange CoinDCX Hack, everything is running as usual on the platform. There are no caps on purchasing, selling, or withdrawing assets. The team also said that the losses will be absorbed by the company only. 

Source: Sumit Gupta

The CEO requested users not to panic. "Don't rush to sell your cryptocurrencies. That tends to cause losses and bad decisions. Let the market settle. Stay calm, stay confident," he said.

Late Disclosure Raises Questions

Although the crypto exchange CoinDCX hack happened early on Saturday morning, it was not made public until 17 hours later. It was after ZachXBT raised flags of suspicious activity that the team formally announced this news. This was after a delay that has left some members of the community concerned.

Similar Incidents in the Past

This is not the first time an Indian platform has been targeted. Another well-known platform, WazirX, was attacked for over $230 million in 2024. That incident was subsequently attributed to the North Korean hacking group Lazarus.

Crypto-world Cyberattacks are on the Rise. 

As more individuals begin to use cryptocurrencies, exchanges are now big targets for phishers. Recently the GMX hack was also in the news. 

Insights and Precautions for Cryptocurrency Investors

The Crypto Exchange CoinDCX Hack serves as a reminder that the best exchanges can be atteckers. Although the platform moved fast and secured user funds, the event is evidence of security's importance and acting quickly when an issue arises.

It is recommended that users keep their private keys secure, use hardware wallets if available, and remain vigilant for suspicious activity on their accounts.