Indian cryptocurrency exchange CoinDCX has confirmed a $15.99 million loss linked to retired wallet infrastructure, days after CEO Sumit Gupta dismissed reports of suspicious outflows as a possible false alarm. The exchange says a failed automated transfer process allowed deposits to accumulate in vulnerable addresses and that the company absorbed the loss.
TL;DR
- $15.99 million loss confirmed: CoinDCX says the loss involved 15.99 million USDT linked to old wallet infrastructure.
- Earlier response questioned: The confirmation followed public scrutiny of suspicious transactions and the exchange’s initial denial.
- Customer balances reportedly unaffected: CoinDCX says active wallets, trading systems and customer balances were not affected.
What CoinDCX Says Happened
CoinDCX said the affected addresses belonged to operational wallet infrastructure compromised during a July 2025 security incident that cost the exchange approximately $44 million.
According to the company’s explanation, some customers continued depositing funds to deprecated addresses after the earlier incident. CoinDCX says those deposits were credited to customer portfolios, while a secondary automated service was supposed to transfer the funds into primary wallets.
That transfer process failed for a period, allowing deposits to accumulate in the old infrastructure. CoinDCX subsequently confirmed that 15.99 million USDT had been lost and said the company absorbed the financial impact.
The exchange has not publicly established who was responsible for the irregular movement of funds or fully explained how the loss occurred.
Why the Initial Response Drew Scrutiny
The disclosure followed reports from blockchain investigators who flagged suspicious outflows from addresses linked to CoinDCX. Gupta initially rejected claims that the activity represented a new breach, describing the reports as a false alarm.
On-chain investigator ZachXBT challenged the exchange’s explanation, pointing to transaction activity suggesting that at least one disputed address had continued processing deposits in 2026.
CoinDCX later acknowledged the loss and provided a different explanation centered on the failure of its automated transfer process.
The sequence raised questions about the company’s monitoring of retired infrastructure and the speed of its public communications. CoinDCX acknowledged that its review took time and said it could have been more proactive in providing an update.
What the Exchange Says About Customer Funds
CoinDCX maintains that its active wallets and trading systems remained unaffected and that customer deposit balances are fully accounted for. The company says controls and response measures prevented the incident from affecting its active operations.
These assurances are the exchange’s own statements and should be distinguished from independently verified findings. The announcement does not establish every technical detail of the incident or identify the party responsible.
The episode also highlights a broader operational risk: retiring a wallet does not necessarily eliminate exposure if users can still send funds to its address or if legacy keys and processes remain vulnerable.
For more industry context, readers can explore Bitcoinist’s cryptocurrency reporting and its blockchain coverage.
Security Lessons for Crypto Exchanges
Exchanges must account for outdated deposit addresses, private-key exposure, automated transfer failures and unusual transaction patterns. Monitoring systems should identify when funds accumulate in unexpected locations and trigger timely investigation.
The CoinDCX website provides the company’s official information. Its public incident explanation should be read alongside independent reporting when assessing the timeline and unresolved technical questions.
CoinDCX’s confirmation changes the story from a dispute over suspicious transactions to an acknowledged financial loss. Questions about the root cause, legacy-wallet controls and disclosure timing remain important as the industry evaluates the incident.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments