TL;DR
- CoinDCX CEO Sumit Gupta publicly denied acquisition talks with Coinbase, dismissing them as “rumours” and reaffirming the exchange’s focus on India’s crypto growth.
- Reports indicated that Coinbase was in talks for a deal that would value CoinDCX at under $900 million, which is a 60% drop from its highest value of $2.2 billion in 2021, due to regulatory uncertainties.
- The denial follows a $44 million security breach linked to North Korea’s Lazarus Group, prompting CoinDCX to offer an $11 million bounty for fund recovery.
CoinDCX CEO Sumit Gupta took to X to quash rumors of a Coinbase acquisition, declaring the Indian exchange “not up for sale.” His remarks opposed a Livemint article that described ongoing discussions valuing CoinDCX at less than $900 million, which is only a small part of its $2.2 billion worth during the 2021 bull market. Gupta emphasized CoinDCX remains “super focused” on India’s crypto ecosystem, pledging further updates soon.
Just got up and saw this news! 😅
Ignore the rumours! CoinDCX is “super focused” on building for India’s crypto story and not up for sale!
Will share more later but just wanted to clarify this upfront! https://t.co/4CqAf94GjT
— Sumit Gupta (CoinDCX) (@smtgpt) July 29, 2025
Coinbase’s Calculated Interest
Sources revealed Coinbase viewed the potential acquisition as a “low-cost gamble” to re-enter India’s volatile market. Despite halting services in 2023 due to Reserve Bank of India (RBI) pressure, Coinbase secured registration with India’s Financial Intelligence Unit (FIU) in March 2024, enabling a regulatory comeback. A spokesperson noted the exchange “continuously explores opportunities” to accelerate growth but declined to address the rumors.
Coinbase also holds stakes in rival exchange CoinSwitch, sparking speculation about a merger, though CoinSwitch’s co-founder confirmed no “active conversations”.
$44M Hack Shadows Negotiations
The acquisition buzz follows a July 19 security breach where hackers stole $44 million from CoinDCX’s internal liquidity account. Cybersecurity firm Cyvers attributed the attack to North Korea’s Lazarus Group, citing tactics matching 2023’s $234 million WazirX heist.
While user funds remained secure in cold storage, CoinDCX faced criticism for a 17-hour disclosure delay. In response, it launched a bounty program offering 25% of recovered assets, up to $11 million, for tracing the stolen crypto.
India’s Regulatory Tightrope
Coinbase’s interest underscores India’s fraught regulatory landscape. After a failed 2022 launch and RBI-driven service pause, its FIU approval signals cautious re-entry. Acquiring CoinDCX could fast-track market access, leveraging the exchange’s user base amid unclear tax policies and compliance demands. Yet Gupta’s rejection highlights local players’ resolve to lead India’s crypto evolution, even as they navigate security threats and valuation headwinds.
