India’s crypto community woke up shocked on July 19, 2025, when CoinDCX, one of the country’s largest and most trusted exchanges with Gautam Gambhir as its brand ambassador, reported a massive security breach worth $44.2 million (~₹368 crore).
This incident not only exposed vulnerabilities in internal operations but also highlighted broader security challenges across the crypto industry. Here’s a detailed, easy-to-understand breakdown of what happened, how it unfolded, and its implications for Indian crypto users and investors.
Let’s break it down.
| Parameter | Details |
|---|---|
| Date | July 19, 2025 |
| Amount Stolen | $44.2 million (~₹368 crore) |
| Funds Affected | Operational treasury (customer funds safe) |
| Type of Breach | Server breach targeting internal liquidity provisioning account |
| First Alert | Blockchain investigator ZachXBT |
| Key Assets Stolen | Mainly USDC, USDT (bridged from Solana to Ethereum) |
| Attacker Methods | Used Tornado Cash to obfuscate transactions |
| CoinDCX Response | Isolated affected account, covering loss from treasury, launched investigation |
| Future Measures | Bug bounty program, stronger cybersecurity partnerships |
How The CoinDCX Hack Occurred?
🗝️ Step 1: Gaining Access: The firm fell for a complicated server breach through which the attackers had compromised a CoinDCX operations account that was operated internally for liquidity provisioning on a partner exchange.
💸 Step 2: Funding the Attack: Their wallet had been seeded with 1 ETH by Tornado Cash, a widely used crypto mixer that obfuscates the origin of transactions. This rendered it virtually impossible to trace money back to an original source.
🔗 Step 3: Transferring The Stolen Funds: They mainly took stablecoins (USDC and USDT) and bridged some of the funds from Solana to Ethereum, through several blockchains to further obscure tracking.
⏰ Step 4: Wait to Make It Public: Suspect activities found 17 hours before CoinDCX officially confirmed the hack by blockchain investigator ZachXBT. This void was a source of disquiet in the crypto community, which questioned whether the organization was being transparent and communicating risks as they were evolving.
📝 CoinDCX’s Official Response
CEO Sumit Gupta and the CoinDCX team responded with:
✅ Immediate isolation of the breached operational account
✅ Commitment to cover the entire $44.2 million loss from their own treasury, ensuring no impact on customer funds
✅ Collaboration with external cybersecurity experts to conduct a full-scale investigation
✅ Plans to launch a bug bounty program to identify vulnerabilities proactively
✅ Assurance that trading, INR withdrawals, and portfolio access remain fully operational, despite temporary traffic-induced slowdowns
Here you can see his statment on X.com
Another Tweet from the Founder that spreading Trust and Postivity…
In a follow-up tweet addressing growing concerns about fund safety and withdrawal delays, CoinDCX’s founder reassured users with the following insights:
📝 Key Highlights from the Tweet:
- Withdrawals and trading are fully operational. While some users experienced minor delays due to server traffic spikes post-announcement, these issues were promptly resolved with enhanced server capacity.
- The founder urged users to stay calm and avoid panic selling or withdrawing funds in fear, emphasising that all customer assets are stored in segregated cold wallets and remain unaffected by the breach.
- They reiterated CoinDCX’s commitment to transparency and regular communication, assuring users that their money is safe and operations are running smoothly.
- Users were reminded to beware of fake news or phishing messages that often surface after such incidents, and to rely only on official CoinDCX channels for updates.
Read Full Report: https://coindcx.com/blog/announcements/incident-report-july-19-2025/
💡 Why This Matters for Investors
In times of crisis, user panic can trigger sudden mass withdrawals, risking platform liquidity even if customer funds are technically safe. By communicating proactively about withdrawal functionality and asset security, CoinDCX prevented potential chaos within the Indian crypto ecosystem, demonstrating responsible crisis management despite their delayed initial disclosure.
🛡️ If You Are a CoinDCX Investor – What Should You Do Now?
If you are a CoinDCX active user or investor, this is what you should do to keep yourself safe and maintain a level of activity on this exchange, post this incident:
✅ Stay Calm & Stay Informed
Don’t overreact to sell or withdraw based on a headline. CoinDCX has made it clear that customer funds are safe and all systems are functioning as usual. You should always look at their official channels and incident blog updates before doing anything too crazy.
🔒 Use All Security Features on Your Account
Double-check 2FA settings, withdrawal whitelists and login security. While this hack specifically affected is operational funding, protecting individual accounts from phishing or social engineering tricks should still be a priority.
⚠️ WARNING: Scammers impersonating CoinDCX support
With every major hack, scammers swoop in posing as “help recovering funds.” Do not provide your login details, seed phrase or OTPs to anyone who approaches on Telegram, WhatsApp or direct messages and pretends to work for CoinDCX.
🏦 Check Your Long-Term Storage Strategy
If you are holding large amounts of, then transferring it to some personal cold wallet (hardware wallet) instead of keeping it on any exchange is a good idea. Bear in mind: “Not your keys, not your coins.”
🔄 Diversify Your Exchange Exposure
If you use one exchange then you are vulnerable to the risks of that platform. Distribute your funds for safe keeping among a variety of known platforms and wallets to reduce the risk of single-point failure.
📲 Follow MiningMind for Crypto Security Updates as They Happen
For the latest news, expert analysis and safety tips in easy language, follow @miningmindss on Twitter. Keeping an eye on it will help you to make smart moves like when markets like crypto are unpredictable.
This Is Not An Isolated Incident: Crypto Hacks Happen Frequently
While the CoinDCX breach shook Indian investors, it’s far from rare in the global crypto landscape. In just the last 6-8 months, the industry has witnessed multiple high-profile hacks, exposing systemic vulnerabilities in exchanges, DeFi protocols, and bridge infrastructure.
🔴 1. Orbit Chain Hack (December 31, 2024) – ~$82 Million Stolen
On a New Year’s Eve, Orbit Chain, a cross-chain bridge protocol to make assets flow among various blockchains, was attacked. Attackers hacked validator keys to steal ~$82 million in Orbit Bridge.
Why it matters: Cross-chain bridges’ validators are like security guards. With their keys compromised, hackers can then sign transactions okaying fake sales, siphoning liquidity pool holdings.
Impact: Broken trust in cross-chain bridges, and major protocols having to rethink their validator security model.
🔴 2. WazirX Hack (July 2024) – India’s Biggest Hack (~$230 Million Stolen)
In July 2024, WazirX, India’s largest crypto exchange, was hit by a massive hack worth over $230 million, affecting customer funds directly.
How it happened: The attackers exploited a vulnerability in WazirX’s hot wallet infrastructure, allowing them to siphon customer assets.
Aftermath: Triggered intense scrutiny from Indian regulators, forcing WazirX to revamp security systems and revise its insurance policies to restore user trust.
🔴 3. KyberSwap Exploit (November 2024) – ~$47 Million Drained
KyberSwap, a leading DeFi liquidity aggregator, suffered a smart contract exploit in November 2024. Hackers drained ~$47 million by manipulating KyberSwap’s protocol logic.
Why it happened: DeFi protocols are only as secure as their smart contract code. Exploits like this often involve complex reentrancy or flash loan attacks targeting overlooked vulnerabilities.
Impact: Highlighted the critical need for rigorous smart contract audits and bug bounty programs before deploying new features.
🔴 4. Rain Exchange Hack (May 2025) – ~$14 Million Stolen
Rain, a popular crypto exchange based in the Middle East, faced a targeted server breach in May 2025, resulting in a loss of approximately $14 million.
How it happened: Attackers breached Rain’s infrastructure servers, gaining unauthorised access to operational wallets.
Aftermath: Rain temporarily suspended operations to investigate, leading to panic among regional users. The hack highlighted the importance of continuous penetration testing and server-level security measures.
🔴 5. Hedgey Finance Hack (April 2025) – ~$44 Million Exploited
Hedgey Finance, a DeFi protocol offering token options and vesting contracts, was hacked for ~$44 million in April 2025.
How it happened: Hackers exploited a vulnerability in their token options contract logic, manipulating parameters to drain protocol funds.
Impact: Exposed how DeFi composability (interconnected smart contracts) can be a double-edged sword if not designed with strict security guardrails.
🔴 6. CoinsPaid Hack (July 2024) – ~$37 Million Stolen
CoinsPaid, a crypto payment processor facilitating large transactions for businesses, was hacked in July 2024.
How it happened: The attack was a well-coordinated phishing and infrastructure compromise, where hackers tricked internal staff and leveraged access to drain ~$37 million.
Impact: CoinsPaid had to temporarily halt operations and rebuild trust, showing how human factor weaknesses remain the biggest cybersecurity threat, even with advanced tech defences.
And now CoinDCX….
These incidents reveal a harsh reality:
“No matter how big, regulated, or trusted a platform is, if you don’t control your keys, your crypto remains at risk.”
Exchanges, bridges, and protocols can be technologically impressive yet vulnerable to a single unnoticed bug, employee mistake, or sophisticated attacker.
Final Reflection: Is Crypto Safe?
While the promise of crypto is freedom, decentralisation, and financial revolution, it comes with hidden dangers that traditional investors often ignore.
🧠 Ask yourself: If platforms spending millions on cybersecurity can still be breached, how prepared are you to handle the risks of crypto investing?
Stay informed, diversify wisely, and never let FOMO override security discipline.