India’s top crypto exchange assures clients that user funds remain safe despite one of the country’s biggest crypto breaches.
Indian crypto exchange CoinDCX has demonstrated remarkable transparency and operational strength by confirming that hackers did not steal any user funds during the recent $44 million attack on its platform. The CoinDCX hack update, which involved a compromised operational wallet, triggered temporary withdrawal suspensions and industry-wide concern. However, CoinDCX leadership has moved swiftly to restore user trust by resuming withdrawals and providing full assurance of asset security.
Internal Breach, Not Customer Wallets
The breach, first disclosed earlier this week, targeted CoinDCX’s internal operational wallet rather than any user custodial accounts. Co-founder and CEO Sumit Gupta emphasized that user funds were completely segregated from the affected wallet and remain untouched.
“This was an operational risk incident. Our customer wallets are secured in institutional-grade cold storage and were never compromised,” Gupta stated.
This distinction matters deeply in a crypto environment increasingly focused on safeguarding user assets. CoinDCX’s use of multi-layered wallet architecture and segregated asset custody enabled the platform to contain the impact of the attack.
Social Engineering and Cross-Chain Exploitation
According to blockchain security analysts, the attacker deployed a sophisticated social engineering attack, followed by cross-chain movement of stolen funds. The exploit began on the Solana network and was later bridged to Ethereum, with laundering efforts funneled through Tornado Cash.
While the attacker’s identity remains unknown, blockchain investigators are tracing the transaction trail in hopes of recovery. CoinDCX has also onboarded external cybersecurity firms and is cooperating with law enforcement to identify the perpetrator.
$11 Million Bounty Announced
To accelerate the hunt for the attacker, CoinDCX has launched a massive $11 million bounty program—one of the largest of its kind in India’s crypto sector. The company is offering a reward to anyone who gives useful information that helps recover the funds or identify those responsible.
This move reflects an increasing trend among major exchanges to leverage community-driven security incentives in response to high-stakes threats.
Trading and INR Withdrawals Unaffected
In a show of operational resilience, CoinDCX has fully resumed INR withdrawals and platform trading. While crypto withdrawals were paused temporarily as a safety precaution, services have gradually returned to normal.
“We’re committed to being India’s most secure and compliant exchange,” Gupta added. “This incident reinforces our need to double down on transparency and resilience.”
In a blog update to users, the company detailed the steps taken post-breach, including:
-
Enhanced multi-sig protocols
-
Strengthened operational wallet access controls
-
Third-party audits underway
The exchange is now doubling efforts to educate users on wallet safety, internal risk controls, and its long-term plan to prevent future vulnerabilities.
Why This Matters to India’s Crypto Sector
India’s crypto ecosystem has seen explosive growth over the last few years, with CoinDCX emerging as a leading player in exchange services, education, and advocacy. This incident, though serious, is seen by many as a test of maturity rather than a sign of systemic weakness.
Industry insiders suggest that CoinDCX’s prompt communication and transparent response could serve as a blueprint for future crisis management in Indian crypto firms. With government regulation still evolving, maintaining user confidence is essential for widespread adoption.
Moreover, the company’s ability to absorb the $44 million loss internally—without impacting users—signals strong treasury management and business fundamentals.
A Case Study in Risk Segregation
One key takeaway from the CoinDCX case is the importance of risk segregation in crypto operations. By separating user assets from operational funds, the company was able to prevent a disastrous outcome for its clients.
As the global crypto industry continues to mature, best practices in wallet security, internal governance, and external auditing will become the pillars of credibility. CoinDCX, despite being under pressure, appears to be embracing this path with confidence.
Final Thoughts
The CoinDCX hack update is a clear reminder that even well-prepared platforms can face risks. However, the company’s quick action, open communication, and strong steps to protect users have helped it quickly win back trust. As the investigation goes on and efforts to recover funds grow stronger, CoinDCX is showing itself to be a strong leader in India’s fast-changing digital asset space.