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- CoinDCX confirmed on October 25 that it lost 15.99 million USDT through legacy wallets.
- An automated service failed to move customer deposits from retired addresses into secure wallets.
- CoinDCX absorbed the shortfall and urged customers to verify current deposit addresses.
CoinDCX confirmed on Oct. 25 that it lost 15.99 million USDT through legacy wallets, saying it absorbed the loss without reducing customer balances. The acknowledgment followed an Oct. 22 statement dismissing reports about the wallet activity as misleading, while CoinDCX said trading and withdrawals remained uninterrupted.
CoinDCX Links Loss to Failed Wallet Transfers
An automated service failed to move deposits from retired addresses into secure wallets, CoinDCX said. Funds accumulated in infrastructure compromised during its July 2025 incident.
The exchange detected unusual activity on Oct. 21 and identified irregular fund movements the following day. It said blockchain records and community reports helped uncover the problem.
CoinDCX attributed the incident to previously unknown vulnerabilities in the retired infrastructure. It did not specify how long the transfer service had failed or identify the technical vulnerability.
The July incident affected an internal operational account used to provide liquidity on a partner exchange. CoinDCX put that exposure at approximately $44 million and said treasury reserves would cover it. The company said it isolated the account and notified India’s Computer Emergency Response Team.
CoinDCX Acknowledges Processing Deposits After Earlier Denial
On Oct. 22, CoinDCX described reports about the wallet activity as misleading. It said the addresses had been compromised in July 2025 and had not been used by the exchange since.
The Oct. 25 update acknowledged that CoinDCX had continued processing customer deposits sent to those addresses. Its explanation distinguished crediting customer accounts from subsequently moving the assets into secure wallets.
Co-founder and Chief Executive Sumit Gupta had separately rejected suggestions that current wallets were breached. He suggested attackers were reusing old addresses and described the reports as a possible false alarm, while saying the investigation continued.
CoinDCX Urges Customers to Check Deposit Addresses
CoinDCX said customers retained their account balances even though the corresponding assets had not reached its secure wallets. The company absorbed the resulting shortfall.
The exchange urged customers to verify current deposit addresses in its app or website. It plans stronger monitoring of residual systems and reminders that support for retired addresses is time-limited.
