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During investigation, police uncover signs of possible insider involvement. Authorities arrested Rahul Agarwal, a CoinDCX employee, in connection with the theft.
Investigators suspect the arrested employee may have collaborated with external hackers to orchestrate the breach.
Bengaluru Police are investigating a major cryptocurrency theft from leading Indian crypto exchange CoinDCX, where hackers allegedly siphoned off nearly $44 million (about Rs 384 crore) in digital assets. The breach, which surfaced earlier this month, has raised serious concerns about cybersecurity and insider threats in the crypto ecosystem.
The incident came to light on July 19, when CoinDCX detected suspicious activity within its systems. According to an FIR filed on July 22 by Hardeep Singh, Vice President of Public Policy and Government Affairs at CoinDCX, the hackers initially conducted a test transfer of just 1 USDT at around 2:37 a.m., before executing the large-scale heist just a few hours later.
To cover their tracks, the stolen funds were reportedly routed through multiple crypto wallets, complicating efforts to trace the assets.
CoinDCX Employee Arrested in Insider Angle
During the course of the investigation, police uncovered signs of possible insider involvement. Authorities arrested Rahul Agarwal, a CoinDCX employee, in connection with the theft.
According to an NDTV report citing sources, Agarwal had been freelancing using his company-issued laptop without authorisation, and allegedly earned about Rs 15 lakh through these outside engagements over the past year. Investigators suspect he may have collaborated with external hackers to orchestrate the breach.
Cybercrime Teams on the Trail of Funds
Specialised cybercrime units and forensic experts are now analysing the transaction trail to locate and potentially recover the stolen cryptocurrency. The multi-wallet laundering technique used by the hackers has made the tracking process complex, but officials remain hopeful about identifying the end recipients, according to the report.
The case highlights growing concerns over the security protocols at crypto exchanges and the risks posed by internal lapses, even as India’s digital asset market continues to expand.
CoinDCX, one of the country’s largest cryptocurrency platforms, has yet to release a detailed public statement but is cooperating with investigators.
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