CoinDCX Acknowledges Operational Losses Following Suspicious Crypto Transfers

In a statement released on X, CoinDCX explained that despite warnings, some users continued to deposit cryptocurrencies into addresses that were breached during a July 2025 security incident.

The exchange detailed that it usually moves deposits from these outdated addresses to secure the funds and properly account for them; however, this procedure was not performed over an unspecified time frame.

CoinDCX acknowledged this lapse resulted in operational losses, which the company has absorbed.

They assured customers that all impacted deposits have been credited to user accounts and emphasized that active wallets remained secure, with no funds compromised. Client assets continue to be stored in segregated cold wallets.

Earlier, Darcy, co-founder of the asset recovery service FlashRescue, reported roughly $16 million in transfers originating from addresses identified as belonging to CoinDCX.

At the time of this update, CoinDCX has yet to respond to further inquiries from Cointelegraph.

The exchange's latest explanation came after addressing Darcy’s concerns, stating that the flagged addresses were created in January 2025, compromised in July 2025, and had been inactive since then.

Blockchain analyst ZachXBT contested CoinDCX's account, revealing that a deposit address remained active with a liquidity provider for ten months following the July 2025 breach. He noted that the address continued receiving user deposits and transferring them to CoinDCX’s current public hot wallet, as well as receiving transaction fee payments.

CoinDCX’s CEO Sumit Gupta confirmed awareness of the issue, stating that the investigation is ongoing and promising a forthcoming update while assuring that no user funds will be lost.

In July 2025, CoinDCX suffered a $44 million theft during a hack. The company had previously stated that customer wallets were segregated from the compromised account and that the loss would be absorbed by its treasury reserves.

CoinDCX’s admission and clarifications follow heightened scrutiny and are critical for maintaining trust in India’s growing crypto market.

Understanding these developments is important because they highlight operational risks and the exchange’s efforts to protect user funds amid complex security challenges.

This case underscores the significance of transparent communication and robust security practices in preserving customer assets in the crypto ecosystem.