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In a First Incident Report, CoinDCX says the total exposure is being absorbed entirely by CoinDCX, using the company’s treasury reserves.
CoinDCX has faced a “sophisticated server breach” that compromised one of its internal operational accounts, resulting in theft of $44.2 million, or Rs 378 crore.
CoinDCX, India’s largest homegrown crypto exchange, has faced a “sophisticated server breach” that compromised one of its internal operational accounts, resulting in theft of $44.2 million, or Rs 378 crore. Following this, panic started among retail investors about their funds. However, the crypto exchange said the customers’ money is “completely safe”.
In a First Incident Report released on Sunday, CoinDCX said the total exposure is being absorbed entirely by CoinDCX, using the company’s treasury reserves.
“Today, one of our internal operational accounts — used only for liquidity provisioning on a partner exchange — was compromised due to a sophisticated server breach. I confirm that the CoinDCX wallets used to store customer assets are not impacted and are completely safe. This won’t cause any loss to our customers. CoinDCX will be bearing the full amount,” said CoinDCX co-founder Sumit Gupta in a post on X.
“The total amount lost was USD 44Mn out of our treasury assets. Coindcx Treasury will be bearing these losses,” said another co-founder Neeraj Khandelwal.
Customer Anxiety
Over a couple of days, social media platforms have been flooded with complaints from users about withdrawal delays, app glitches, and poor customer support. Many users say they were unable to transfer their crypto holdings or fiat money from the platform — triggering fears of a possible liquidity crisis or worse.
“Wow @CoinDCX. You guys got hacked in last couple of hours n I am unable to access my dashboard n wallet…. Atkeast inform your customers and keeping them in dark won’t help #digitalindia startup has week foundations from Day1,” a user wrote on X.
Users also complained about not being able to withdraw money.
“Hey @CoinDCX, I m unable to withdrawal my money I did everything which is given in instructions update email kyc and all but still you guys don’t giving me withdrawal are you like wizirx farjii type,” wrote a user.
The incident once again puts the spotlight on mounting security threats in the highly volatile world of cryptocurrencies.
Last year, crypto exchange WazirX faced a hack in India, leading to the loss of more than $230 million, and marking one of the biggest such heists in India. The theft had prompted a thorough examination of safety measures and eroded sentiments.
What’s The Update?
The co-founders have updated that Portfolio APIs have been restored.
Affected infrastructure has been completely isolated, and CoinDCX operations continue to run normally, the company said.
CERT-In, or the Indian Computer Emergency Response Team, has been informed about the incident. Detailed forensics with two globally reputed security agencies is being carried out, and reports will be shared for public benefit, it added.
“CoinDCX services remain fully operational. Trading activity, INR deposits and INR withdrawals continue. INR withdrawals below Rs 5 lakhs will reflect in your account within 5 hours, while withdrawals above Rs 5 lakhs will be processed within 72 hours. The incident was isolated and has no impact on your portfolio access or operations,” the company stated.
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