- Hacker used 1 ETH from Tornado Cash to start breach.
- CoinDCX paused Web3 wallet and suspended key trading pairs.
- $44M loss covered by treasury, no user funds affected.
CoinDCX CEO Sumit Gupta has officially responded to the recent $44.2 million security breach that impacted the exchange. The breach, first flagged by blockchain investigator ZachXBT, reportedly began with just 1 ETH traced from Tornado Cash before escalating into a major attack.
According to Gupta, the attacker exploited a vulnerability connected to an internal account on a partner exchange. Most of the stolen funds were transferred to the Solana-to-Ethereum chain, which resulted in instant alerts issued by the trackers.
Gupta also clarified that the only liquidity-provisioning account compromised was internal, not any customer wallet.
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In response to the hack, CoinDCX suspended the Web3 wallet, terminated open spot orders, and temporarily halted a number of trading pairs. The crypto community reacted with varying opinions because many users were already aware of service interruption before an official statement was issued.
CoinDCX Moves to Secure Platform and Track Funds
The company responded by isolating the compromised server and working with CERT-IN and international cybersecurity experts to investigate the breach. A bug bounty program has been introduced, with a reward of up to $11 million to aid in recovering the stolen assets.
CoinDCX clarified that the internal treasury would bear the costs of the financial loss, and no customer funds would be affected. The Web3 services have been halted indefinitely, and the exchange is beefing up security procedures in its framework.
Strong Financials Back Stability Claims
Gupta also revealed key internal performance metrics to strengthen user confidence. The DCX Group, which includes CoinDCX in India, BitOasis in the UAE and Bahrain, and Okto Web3 Wallet, reported annual revenue of ₹1,179 crore, or $136 million.
3/ Financial Snapshot:
Annualized Group Revenue: ₹1,179 Cr
Annualized Transaction Volumes: ₹13.7 Lakh Cr
Assets Under Custody (AUC): ₹10,000+ Cr
— Sumit Gupta (CoinDCX) (@smtgpt) July 22, 2025
The group clocked transaction volume of 13.7 lakh crore, or around $158 billion, and also has more than 10,000 crore (or $1.15 billion) under custody. CoinDCX is a supported company of Bain Capital, Polychain, Jump Capital, and others, totaling 2144 crore of financing ($248 million).
Nevertheless, CoinDCX has been working and is going to recover despite the $44.2 million exploit. The platform promises the safety of users’ funds as it increases security and restores confidence.
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