CoinDCX Admits $16M Loss Just Days After CEO Denied Fresh Wallet Breach

The company's October 25 update revealed that unusual activity detected on October 21 initially prevented any impact to active wallet and trading infrastructure. However, subsequent blockchain movements prompted a deeper investigation, which uncovered vulnerabilities in an old, deprecated operational wallet.

Failed Automated Service

CoinDCX discovered that an automated sweeping service had been malfunctioning, causing user deposits sent to deprecated addresses to accumulate there instead of being transferred to the exchange's current secure wallet infrastructure. This technical failure ultimately led to the $15.99 million loss.

This led to a loss of 15.99 million USDT, which was absorbed by the company.

Contradictory Statements

The admission comes just three days after Gupta publicly dismissed concerns, stating that "CoinDCX wallets are not breached" and suggesting the suspicious transfers were merely hackers reusing old addresses from the July 2025 hack. The CEO had urged against spreading false rumors and emphasized that all current CoinDCX addresses remained secure.

Despite the contradictory statements, CoinDCX stressed that its active wallets, trading systems, and customer balances remained fully protected. Users who deposited to deprecated addresses were still credited, while the company worked to recover the lost funds.