CoinDCX Suffers $44M Crypto Hack via Liquidity Wallet Breach

Indian cryptocurrency exchange CoinDCX has confirmed a $44 million security breach after hackers compromised an internal liquidity operations account linked to an unnamed partner exchange. The exploit was first revealed by blockchain investigator ZachXBT via Telegram before the exchange publicly acknowledged the incident.

CoinDCX co-founder and CEO Sumit Gupta described the breach as a “sophisticated server-side attack,” emphasizing that customer funds remain secure in segregated cold wallets. “The incident was quickly contained by isolating the affected operational account,” Gupta stated, adding that the losses will be fully covered by the company’s treasury and won’t impact users.

The compromised wallet was reportedly funded through Tornado Cash, a crypto mixing tool often associated with obfuscating blockchain transactions. ZachXBT noted that the attacker moved a portion of the stolen funds from Solana to Ethereum via a bridging mechanism, further complicating the asset recovery process.

This breach marks another major setback for India’s crypto sector, occurring exactly one year after rival exchange WazirX suffered a $235 million hack. While the financial impact is smaller, the CoinDCX attack raises fresh concerns about internal security and third-party integrations among exchanges.

CoinDCX is actively collaborating with cybersecurity experts and other exchanges to investigate the breach and freeze the stolen assets. As regulatory scrutiny intensifies and user trust becomes increasingly critical, the incident underscores the importance of securing operational infrastructure—even when customer funds remain untouched.

The hack adds to a growing list of exchange-related security breaches, highlighting persistent vulnerabilities in crypto liquidity operations and reinforcing calls for enhanced safeguards across the industry.