CoinDCX, one of India’s largest crypto exchanges, has reportedly lost around $44.2 million in a suspected hack that occurred about 17 hours ago, according to blockchain investigator ZachXBT. The attacker is believed to have started with just 1 ETH from Tornado Cash and later moved a portion of the stolen funds from Solana to Ethereum.

Users note that CoinDCX has taken down some trading pairs, canceled spot orders, and their Web3 wallet is not working either, leaving them with a lot of questions.

CEO Confirms Security Breach, User Assets Remain Safe

Sumit Gupta, the co-founder and CEO of CoinDCX, shared in a recent X post that the platform suffered a security breach affecting one of its internal operational accounts used for liquidity on a partner exchange. He assured users that no customer funds were impacted, and all user assets remain safe in cold wallets. 

Web3 Down, INR Withdrawals Remain Operational

The issue was caused by a server compromise, but was quickly contained by isolating the affected internal account. Since this account is separate from customer wallets, the impact was limited. He also shared that trading and INR withdrawals continue to function normally, and losses are being fully absorbed by CoinDCX’s own treasury. 

Sumit said their team is working with cybersecurity experts to fix the issue, recover funds, and launch a bug bounty program to improve security. He promised to keep the community updated and stressed the importance of staying transparent during incidents like this.

CoinDCX Web3 is temporarily down as a precaution, but user funds remain safe.

While some praised the team for being transparent and stepping up with clear communication, others noted the delayed response as the official statement came only after ZachXBT brought the incident to light.

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