CoinDCX Suffers Rs 368 Crore Hack, Assures Users Funds Are Safe Amid Server Breach

In a major cybersecurity incident, Indian crypto exchange CoinDCX confirmed a loss of nearly Rs 368 crore following a sophisticated server breach targeting one of its internal operational accounts. The breach, which occurred early Saturday, has reignited concerns over digital asset security in India’s growing crypto ecosystem.

 

Key Highlights:

 

The compromised account was used solely for liquidity provisioning on a partner exchange and did not hold any customer assets.

 

CoinDCX has assured users that their funds remain secure and unaffected, with trading and INR withdrawals continuing uninterrupted.

 

The company will absorb the entire loss from its treasury reserves, which it claims are sufficiently healthy to cover the damage.

 

CoinDCX temporarily paused its Web3 trading platform as a precaution but has since resumed operations.

 

Security Response and Recovery:

 

The internal security team is working with global cybersecurity experts to investigate the breach, patch vulnerabilities, and trace the stolen funds.

 

Blockchain investigators flagged suspicious activity involving the movement of stolen USDC and USDT tokens through Tornado Cash, complicating recovery efforts.

 

CoinDCX plans to launch a bug bounty program to incentivize ethical hackers to identify system weaknesses.

 

Outlook: While the breach has shaken investor confidence, CoinDCX’s swift response and transparency have helped contain panic. The incident underscores the urgent need for robust security protocols and regulatory clarity as India prepares to unveil its first crypto policy paper.

 

Sources: NDTV, IndiaTV News, Economic Times