CoinDCX Admits $15.99 Million Loss Linked to Wallets Compromised in 2025 Hack
Indian cryptocurrency exchange CoinDCX has confirmed a $15.99 million loss involving wallet addresses compromised during its July 2025 security breach. The company said an operational failure allowed deposits to accumulate in outdated wallets, exposing the funds to further losses.
In an October 25 statement, CoinDCX confirmed that it would absorb the entire loss. The exchange also maintained that customer funds remain protected and its active trading infrastructure was unaffected.
Failed Wallet Recovery Process Triggers $15.99 Million Loss
CoinDCX explained that it discontinued its old wallet infrastructure following the July 2025 cyberattack. However, some customers continued sending cryptocurrency to those addresses despite instructions to use updated deposit information.
To protect customers, the exchange operated an automated sweeping service that transferred deposits from retired addresses into secure wallets. That system failed for an unspecified period, allowing funds to accumulate in the compromised infrastructure.
The company identified unusual activity on October 21 and investigated irregular blockchain transactions the following day. Its investigation established that the sweeping failure resulted in a loss of 15.99 million USDT, equivalent to approximately $15.99 million.
CoinDCX said it absorbed the financial impact and credited affected customer deposits. It also emphasized that its current wallets, trading systems, and withdrawal services continued operating normally.
Blockchain Investigators Question Earlier Statements
The disclosure followed concerns raised by blockchain investigators about suspicious transactions involving addresses previously associated with CoinDCX.
On-chain investigator ZachXBT questioned the exchange’s initial explanation that the affected wallets were no longer operational. He pointed to transaction activity suggesting that at least one compromised address continued interacting with CoinDCX infrastructure after the 2025 attack.
CoinDCX co-founder Sumit Gupta initially rejected suggestions of a fresh security breach. The exchange subsequently acknowledged the operational failure while maintaining that its active wallets had not been compromised.
Previous Hack Raises Security Concerns
The latest incident follows CoinDCX’s July 2025 cyberattack, which resulted in approximately $44 million in losses from an internal operational account.
At that time, the exchange said customer assets remained unaffected and committed to covering the financial damage through company reserves.
The latest disclosure highlights the risks associated with retired cryptocurrency deposit addresses and automated fund-management systems. Even after exchanges replace compromised infrastructure, continued deposits to older addresses can create additional exposure.
CoinDCX has urged customers to verify deposit addresses through its official application or website before transferring cryptocurrency.
