Crypto Exchange CoinDCX Hit by $44M Exploit

Indian cryptocurrency exchange CoinDCX announced that it has been hit by a significant security breach, resulting in a $44 million exploit. The incident involved hackers exploiting an internal operational account used for liquidity purposes on a partner exchange. However, there are questions about the company’s transparency.

CoinDCX Suffers $44M Hack

The incident was initially detected by the Security firm Cyvers. This prompted the self-proclaimed blockchain sleuth ZachXBT to investigate and confirm that the breach occurred 17 hours before the exchange’s team disclosed it. ZachXBT tracked the hackers’ activities and revealed that ETH from Tornado Cash funded their illicit wallet address. He further noted that the stolen funds were bridged from Solana to Ethereum. Meanwhile, the stolen funds, believed to have been transferred to external wallets, have sparked concerns about potential further losses.

The hack impacted on-chain assets like ETH and SOL, with funds partially laundered via Tornado Cash. CoinDCX suspended its Web3 wallet service as a precaution. Still, it kept International Normalized Ratio (INR) withdrawals operational, ensuring uninterrupted user activity. However, the stolen funds, believed to have been transferred to external wallets, have sparked concerns about potential further losses.

CoinDCX has confirmed the incident and assured users that a thorough investigation is underway to determine the cause of the breach. The exchange has pledged to compensate affected users for their losses and is working closely with law enforcement to track down the hackers and recover the stolen funds. The company plans to implement a bug bounty program and partner with cybersecurity experts to reinforce its defenses against future attacks.

CoinDCX CEO and co-founder Sumit Gupta said:

“We take the security of our users’ assets very seriously and are working tirelessly to resolve this issue. We will provide regular updates and support to affected users as we work to recover the stolen funds.”

The incident has sparked widespread concern among the crypto community, with many investors and traders expressing disappointment. The exploit highlights the ongoing risks associated with cryptocurrency trading and the need for robust security protocols.

Another Crypto Hack in India

The CoinDCX exploit is one of the largest hacks in recent months. In a past report, another Indian cryptocurrency exchange, WazirX, suffered a $234.9 million wallet exploit last year. The hackers targeted its multisig wallet on Ethereum, stealing assets like PEPE, GALA, and USDT, and converting them into Ethereum.

However, after a thorough investigation, the Delhi Police detained the suspect, SK Masud Alam, a resident of West Bengal, in connection with the exchange’s crypto hack. It was discovered that Alam allegedly created a fake account, which was sold on Telegram, to facilitate the breach.

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