CoinDCX Loses $44.2 Million in Hack Exposing Liquidity Wallet

- CoinDCX hacked for $44.2 million through an internal wallet exploit. - Customer funds remain safe; CoinDCX’s treasury will cover all losses. On July 19, 2025, CoinDesk reported a breach at top Indian crypto exchange CoinDCX, which lost $44.2 million in an exploit that targeted an operational liquidity wallet. The incident was first flagged by blockchain security firm Cyvers, while further on-chain analysis from investigator ZachXBT revealed suspicious transactions linked to the breach. According to a July 19 analysis posted on X (formerly Twitter) by ZachXBT, the attack focused on an internal wallet used for liquidity provisioning on a partner exchange. His report showed that the hacker's wallet first received 1 ETH through Tornado Cash. Subsequently, the attacker used cross-chain bridges to transfer the stolen funds, moving assets from Solana to Ethereum in a sophisticated method used to obscure the trail. In a statement on X (formerly Twitter) on July 19, CoinDCX CEO Sumit Gupta confirmed the hack. He emphasized that customer funds remain unaffected because the exchange stores them in secure cold wallets, which are isolated from operational wallets. Furthermore, Gupta assured users that the firm would absorb the $44.2 million loss through its treasury and added that services like trading and INR withdrawals remain operational without interruptions. In response, CoinDCX is collaborating with cybersecurity firms to investigate the incident, trace the stolen funds, and fortify its systems. The company also announced plans to introduce a bug bounty program to incentivize researchers to discover infrastructure vulnerabilities. Gupta promised regular progress updates; however, reports noted that some community members expressed concern over the delayed official announcement, which came after ZachXBT’s early revelations. As of July 19, at 17:15 UTC, CoinMarketCap data showed Ethereum (ETH) trading at $3,549.72 (-0.79%) and Solana (SOL) priced at $177.42 (-0.47%).