India’s Crypto Exchange CoinDCX Suffers $44.2 Million Hack, Vows Full Recovery And Customer Protection

CoindcX, one of the best crypto trading platforms in India, confirmed that it had suffered a major security violation, which caused a flight of around $ 44.2 million to digital active ingredients.

According to the company, the attack, which occurred on July 19, specifically targeted one of its internal operational accounts used only for the liquidity supply on an exchange of partners, due to a violation of sophisticated server.

However, despite the incident scale, the exchange noted that the portfolios used to store customer assets have not been affected and are completely safe. The incident was quickly insulating by the affected operational account. Coindcx said that as its operational accounts are separated from customer’s portfolios, exposure is only limited to this specific account and is entirely absorbed by the reserves of the treasury.

“Our internal security and operating teams worked throughout the day with the main cybersecurity partners to investigate the issue, correct all vulnerabilities and draw the movement of funds. We collaborate with the exchange partner to block and recover assets, including the release of a bug bonus program soon.

“Each security incident is learning, and we will learn from this and further strengthen our platform. More importantly, it is our time to win this war against cyber states in industry, and we are committed to working with experts to secure our industry ”, The co-founder of the Sumit Gupta company wrote via an article on X.

Coindcx recovery efforts

Following the important offense on Coindcx, the exchange collaborates with the IT emergency intervention team (CERT-IN) of India, the exchanges of partners and the global cybersecurity experts to investigate the violation and retrace the stolen funds.

In addition, the exchange has announced a recovery premium program, offering up to 25% of the funds recovered from individuals or teams that help recover funds or identify the authors.

The company wrote,

“Announce the Bounty Recovery Bounty program: up to 25% of the funds recovered will be allocated to individuals or teams that can help trace and recover the stolen crypto. We want to be frank. The exhibition came from our reserves, and we have already absorbed it by our corporate treasure.

“It had an impact on any of our customers, and the platform continues to function as normal. More than the recovery of stolen funds, which is important for us is to identify and catch the attackers, because such things should not happen again, not with us, not with anyone in the industry. We are going to fight this and ensure that the Indian cryptographic community comes out of this stronger ”.

In the wake of the security violation, Coindcx in the last 24 hours would have received a total of approximately 31,462 inr withdrawal requests from our customers.

Founded in 2018, Coindcx has become the main exchange of crypto in India, serving more than 16 million users and offering access to more than 500 cryptography workers. The company became the first unicorn in India’s cryptography in 2021, raising $ 90 million to an evaluation of $ 1.1 billion, followed by a cycle of $ 135 million in 2022, bringing it to 2.15 billion dollars.

Supported by investors like B Capital, Coinbase Ventures and Polychain Capital, Coindcx has positioned itself as a safety focused platform, maintaining monthly transparency reports and a remuneration fund of $ 7 million for potential user losses.

Coindcx’s violation occurs after the Crypto exchange of India Wazirx underwent a significant violation which saw millions of dollars destroyed from its platform. Recall that last year, the exchange underwent a major security violation, which led to a flight of more than $ 230 million in digital assets.

Wazirx, which is popularly called “India Ka Bitcoin Exchange” confirmed the violation in an article on X, formerly known as Twitter. According to a Coindesk report, blockchain Sleuth Elliptic, the pirates linked to North Korea seem to be behind the attack.

The recent violation on COINDCX has raised questions about operational security in Indian cryptography exchanges, especially since the sector works without a full regulatory framework.

Flood cryptography flight

The incessant cases of cryptographic flight are not surprising because the chain-analysis in its recent report, revealed that the year 2025 promises to be the most devastating for the flight linked to cryptocurrency.

According to the report, the first half (H1) of 2025 experienced unprecedented levels of cryptocurrency, with more than $ 2.17 billion already stolen from crypto services, exceeding total losses of 2024.

Until now, the 2025 data have a disturbing image of the evolution of cryptographic crime. While the ecosystem has matured in terms of regulatory frameworks and institutional security practices, threat stakeholders have improved their capacities and extended their range of objectives. As attackers evolve with the use of sophisticated tools, experts expressed the need for robust protection, education and global collaboration.