TL;DR
- CoinDCX confirmed a loss of 15.99 million USDT after an automated process responsible for transferring deposits failed.
- The affected wallet belonged to infrastructure compromised during a July 2025 hack that caused approximately $44 million in losses.
- The exchange will absorb the entire loss and says its users’ funds remain protected in cold wallets.
CoinDCX, India’s largest crypto exchange by trading volume, confirmed a loss of 15.99 million USDT after an internal failure prevented deposits from being transferred out of a wallet that had been retired from its infrastructure.
The affected address had been compromised during a cyberattack in July 2025, when the platform suffered losses of approximately $44 million. Although CoinDCX had stopped using it as part of its operational infrastructure, some users continued sending funds to that address.
The company explained that deposits received at the old addresses were still automatically credited to customer accounts. A separate service was then supposed to transfer those assets to the exchange’s operational wallets.
CoinDCX Confirms Failure in Automated Deposit Transfers
The system responsible for transferring the funds, known as sweeping, stopped functioning properly for a certain period. As a result, deposits accumulated at an address that had already been retired.
The activity attracted the attention of blockchain investigators, who detected approximately $16 million in suspicious outflows from addresses linked to CoinDCX.
Initially, the exchange’s CEO, Sumit Gupta, dismissed the warnings as a false alarm. The company maintained that the flagged addresses were old and had not been used since the 2025 security incident.
However, on-chain investigator ZachXBT pointed out that one of those addresses, identified as TQKJQ, had continued receiving deposits that were subsequently transferred to the exchange’s operational wallet in April and May 2026.
After reviewing the incident, CoinDCX acknowledged that the service failure had resulted in a loss of 15.99 million USDT, which the company will absorb in full.
Exchange Says User Funds Remain Protected
CoinDCX clarified that the losses will not affect customer balances, as the deposits had already been credited to their accounts before the incident occurred.
The company stated that user funds are held in segregated cold wallets, protected by custody systems and security controls that operate offline.
The statement did not identify those responsible for the irregular fund movements or explain how the assets were withdrawn from the affected address. It also did not classify the incident as a new hack.
CoinDCX acknowledged that it could have communicated the issue sooner, but said it needed to complete a review of its infrastructure to reconstruct the sequence of events before publishing its findings.
