Indian cryptocurrency exchange CoinDCX confirmed a $15.99 million loss linked to retired wallet infrastructure, days after CEO Sumit Gupta dismissed reports of suspicious outflows. The exchange stated the loss involved 15.99 million USDT connected to operational wallet infrastructure compromised during a July 2025 security incident that cost approximately $44 million. According to CoinDCX, a failed automated transfer process allowed customer deposits to accumulate in vulnerable deprecated addresses, and the company absorbed the financial impact.
CoinDCX Links Loss to Failed Automated Transfer Process
CoinDCX stated the affected addresses belonged to operational wallet infrastructure compromised during a July 2025 security incident. According to the company's explanation, some customers continued depositing funds to deprecated addresses after the earlier incident. CoinDCX said those deposits were credited to customer portfolios, while a secondary automated service was supposed to transfer the funds into primary wallets.
That transfer process failed for a period, allowing deposits to accumulate in the old infrastructure. CoinDCX subsequently confirmed that 15.99 million USDT had been lost and said the company absorbed the financial impact. The exchange has not publicly established who was responsible for the irregular movement of funds or fully explained how the loss occurred.
Blockchain Investigators Challenge Initial Exchange Response
The disclosure followed reports from blockchain investigators who flagged suspicious outflows from addresses linked to CoinDCX. Gupta initially rejected claims that the activity represented a new breach, describing the reports as a false alarm.
On-chain investigator ZachXBT challenged the exchange's explanation, pointing to transaction activity suggesting that at least one disputed address had continued processing deposits in 2026. CoinDCX later acknowledged the loss and provided a different explanation centered on the failure of its automated transfer process.
The sequence raised questions about the company's monitoring of retired infrastructure and the speed of its public communications. CoinDCX acknowledged that its review took time and said it could have been more proactive in providing an update.
CoinDCX States Customer Balances Remain Unaffected
CoinDCX maintains that its active wallets and trading systems remained unaffected and that customer deposit balances are fully accounted for. The company says controls and response measures prevented the incident from affecting its active operations.
These assurances are the exchange's own statements and should be distinguished from independently verified findings. The announcement does not establish every technical detail of the incident or identify the party responsible.
FAQ
What amount did CoinDCX confirm losing in this incident?
CoinDCX confirmed a loss of $15.99 million, specifically 15.99 million USDT, linked to retired wallet infrastructure from a July 2025 security incident.
Why did funds accumulate in vulnerable addresses?
According to CoinDCX, customers continued depositing to deprecated addresses after the July 2025 incident, and a secondary automated transfer service that was supposed to move funds into primary wallets failed for a period, allowing deposits to accumulate.
Did CoinDCX initially deny the breach reports?
Yes, CEO Sumit Gupta initially dismissed reports of suspicious outflows as a possible false alarm before the exchange later confirmed the $15.99 million loss.
