Indian Crypto Exchange CoinDCX Hacked: $44 Million Drained
Indian cryptocurrency exchange CoinDCX suffered a security breach resulting in a $44 million loss, the company announced. Hackers accessed an internal account used for liquidity provisions through a sophisticated server breach. CoinDCX CEO Sumit Gupta confirmed no user funds were compromised due to segregated operational accounts.
How the Hack Unfolded
Investigators traced the attack to an address initially funded with 1 ETH from Tornado Cash, according to blockchain analyst ZachXBT. The hackers later bridged portions of stolen funds between Solana and Ethereum networks.
Protective Measures and Response
Sumit Gupta stated: “We immediately contained the breach by isolating the affected account. Customer wallets remain secure as they’re separate from operational accounts.” The exchange will cover all losses from its reserves.
Recurring Security Challenges
This incident follows a $235 million hack of WazirX exactly one year prior, noted analyst Infinity Hedge. These breaches highlight persistent cybersecurity challenges facing crypto exchanges.
Next Steps for CoinDCX
The exchange continues investigating while implementing enhanced security protocols. This event underscores the importance of robust safeguards in the cryptocurrency sector as platforms work to prevent future breaches.
