Indian cryptocurrency exchange CoinDCX confirmed a loss of approximately $16 million following a security incident involving its wallet infrastructure. The company stated that 15.99 million USDT was drained on the Tron network on October 21. CoinDCX reported that it has covered the loss internally and emphasized that customer funds remain secure.
The breach originated from a failure in an internal process designed to sweep user deposits from wallets that had been retired following a previous security incident. CEO Sumit Gupta initially described reports of the outflow as a false alarm on social media, claiming the addresses had been compromised in July 2025. However, on-chain investigator ZachXBT disputed this, noting the wallets were active as recently as April and May.
This incident follows a significant security breach in July 2025, where the exchange lost approximately $44 million. That earlier event led to a police investigation and the arrest of an employee. The wallets involved in the latest loss were legacy addresses from that previous attack that had not been fully cleared by the automated transfer system.
Beyond recent security challenges, CoinDCX has faced allegations regarding fraud and impersonation scams that triggered police inquiries. The company continues its investigation into the latest incident and has pledged to provide further updates as more information becomes available.
