CoinDCX Confirms $16 Million Loss After Wallet Sweep Failure

CoinDCX acknowledged a 15.99 million Tether (USDT) loss tied to failed wallet sweeps, revealing that deposits continued reaching infrastructure the Indian exchange had retired after a 2025 security incident.

On Oct. 25, CoinDCX said an automated service that moved deposits from deprecated addresses into primary wallets had failed for an unspecified period. The exchange said it absorbed the loss and customer balances remain safe.

Three days earlier, CoinDCX co-founder and CEO Sumit Gupta described suspicious wallet activity as a “false alarm,” saying hackers appeared to be reusing old addresses. Blockchain investigator ZachXBT challenged the exchange’s accounting, alleging that $15.8 million in user deposits was unaccounted for.

CoinDCX said the affected wallets were tied to its July 19, 2025, security incident. Customer deposits sent to the retired addresses first appeared in user portfolios, while a separate process was responsible for consolidating them in primary wallets.