CoinDCX disputes fresh hack claims as $16M in wallet transfers draw scrutiny
CoinDCX rejected allegations of a fresh security incident after investigators traced roughly $16 million in transfers from wallets associated with the Indian exchange. CEO Sumit Gupta said the matter was under review and promised that customers would not lose funds, while the company maintained the wallets had been compromised in a $44 million hack in July 2025 and were no longer in use. Blockchain investigator ZachXBT challenged that explanation, saying a deposit address tied to a liquidity provider stayed active for months after the hack.
CoinDCX said the wallets at issue were set up in January 2025 and hit in a July 2025 breach that cost $44 million. The exchange says it retired those wallets afterward and that customer holdings sat elsewhere. CEO Sumit Gupta said an inquiry is underway and pledged no customer losses.
Investigator ZachXBT contested that timeline, claiming a deposit address connected to a liquidity provider kept operating for ten months after the breach, routing deposits to CoinDCX’s current public hot wallet and receiving fee payments. FlashRescue’s Darcy traced about $16 million from addresses labeled as CoinDCX and noted two proof-of-reserves addresses sent funds to a flagged Tron address.
The dispute may affect CoinDCX users and Indian crypto traders by keeping uncertainty around custody and proof-of-reserves claims alive. If investigators’ questions remain unresolved, some customers could move assets to other platforms or demand clearer disclosures. Broader confidence in exchange security may also be tested, potentially prompting more scrutiny from auditors, counterparties, and regulators. However, the exchange’s pledge to cover losses could limit immediate harm if it is honored.