CoinDCX Reports $44.2 Million Hack, Ensures Customer Funds Safety

Sumit Gupta, CEO of India’s major crypto exchange CoinDCX, confirmed a security breach involving an internal wallet, resulting in approximately $44.2 million in losses. The breach has broader implications for cryptocurrency exchange transparency and security standards as CoinDCX collaborates with experts to enhance security protocols.

CoinDCX assured users their funds remain safe. Sumit Gupta stated that trading and withdrawals are operational. CoinDCX plans to cover the losses from its treasury and enhance systems’ security post-incident review.

CoinDCX Faces $44.2 Million Security Breach

India’s crypto exchange CoinDCX faced a breach, losing approximately $44.2 million. The event became public following on-chain investigator ZachXBT’s report. The breach involved a liquidity wallet used in partnerships, not customer-facing wallets, per CEO Sumit Gupta.

Community reactions suggested concerns over delay in disclosure. Some members expressed apprehension about transparency before CoinDCX’s official statement. Gupta assured measures are underway to avoid future risks through a bug bounty program.

“The breach involved an internal wallet used for liquidity on a partner exchange, not user-facing wallets. We have isolated the compromised systems; user funds remain unaffected in cold wallets. Trading and INR withdrawals continue to function normally. Losses will be covered by CoinDCX’s own treasury. We’re working with security experts to investigate and will launch a bug bounty program to enhance security.” — Sumit Gupta, CEO, CoinDCX

Experts Warn of Increasing Crypto Exchange Vulnerabilities

Did you know? Hackers frequently target cross-chain asset bridges; similar events occurred with Ronin Bridge and KuCoin breaches, highlighting ongoing vulnerabilities within exchange platforms.

Ethereum (ETH) currently trades at $3,540.94, with a market cap of $427.43 billion, dominating 11.12% of the market, despite a 1.8% drop over 24 hours. ETH has surged 124% over 90 days, according to CoinMarketCap.

Experts note the CoinDCX breach emphasizes the need for enhanced blockchain security practices. Security experts advocate for robust protocols to prevent similar attacks, recommending multi-signature wallets and stringent transaction monitoring systems.