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CoinDCX said on Oct. 22 that it credited all affected user deposits and absorbed losses after a wallet-transfer process failed, while denying a new $16 million hack, the latest twist in the CoinDCX hack saga. The Indian exchange said the suspicious transfers involved previously compromised addresses and that its active wallets were unaffected.
The admission followed investigators’ challenges to CoinDCX’s initial explanation that the flagged addresses had been abandoned after its July 2025 hack.
CoinDCX Acknowledges Losses From Failed Deposit Transfers
CoinDCX said its process for moving deposits out of compromised addresses had failed for a period, leaving the company to cover the resulting losses. In its Oct. 22 statement, the exchange said: “This failure led to some operational losses, which were absorbed by CoinDCX.”
The exchange acknowledged the failure after investigators disputed its account of about $16 million in suspicious transfers. It has not disclosed the size of the operational losses.
CoinDCX Says Affected Depositors Have Been Credited
Some customers continued sending crypto to old deposit addresses despite warnings issued after the July 2025 compromise, CoinDCX said. The company said it normally moves those deposits into secure wallets to account for the funds, but that process failed.
CoinDCX said every affected deposit had been credited to the relevant user account. It also maintained that customer assets remained in segregated cold wallets and that no funds from its active central or user wallets had been compromised.
CoinDCX’s instruction remains to use the latest deposit addresses rather than ones affected by the earlier breach.
Investigators Challenge CoinDCX’s Abandoned-Wallet Account After Hack
Darcy, co-founder of asset recovery platform FlashRescue, flagged about $16 million in USDT▲$0.9991 and TRX▲$0.3295 transfers as suspected theft. According to <a href="https://www.coindesk.com/markets/2026/10/23/india-s-largest-exchange-denies-hack-after-blockchain-sleuths-pointed-to-usd16-million-in-suspicious-outflows” rel=”nofollow noopener” target=”_blank”>CoinDesk, Darcy said the funds went to a single Tron address before being split among several wallets. The largest transaction was roughly 15.8 million USDT.
CoinDCX initially said the addresses were created in January 2025, compromised that July and unused by the exchange since. CEO Sumit Gupta suggested the hackers from the earlier incident were reusing them.
Blockchain investigator ZachXBT disputed that account. He said one deposit address remained in use by a liquidity provider for 10 months after the July incident, continued moving user deposits to CoinDCX’s current public hot wallet and received transaction-fee funding as recently as April and May 2026.
CoinDCX Promises Further Investigation
Responding to ZachXBT, Gupta said CoinDCX was investigating further and would share an update. The next explanation will need to address the failed transfer process and investigators’ claims about continued activity involving the old addresses.
The controversy follows CoinDCX’s $44 million hack in July 2025. At that time, the exchange said customer wallets were separate from the affected account and that it would cover the loss from treasury reserves.
When were the disputed wallet addresses created and compromised?
CoinDCX dates their creation to January 2025 and their compromise to July 2025. The exchange describes them as retired addresses affected by the earlier incident.
What does CoinDCX’s deposit-sweeping process do?
It moves deposits sent to old addresses into secure wallets so CoinDCX can account for them. The company said a failure in this process caused losses that it absorbed.
Which address did ZachXBT cite as evidence of continued use?
He cited a CoinDCX deposit address that he said a liquidity provider continued using after the July 2025 incident. His challenge focused on transfers to the exchange’s current public hot wallet and transaction-fee funding in April and May 2026.
How much did CoinDCX lose in the July 2025 hack?
The earlier hack cost CoinDCX about $44 million. Its response at the time was to cover that loss from treasury reserves while maintaining that customer wallets were separate.
Did CoinDCX’s trading continue during the wallet controversy?
The exchange said trading continued as usual. It also assured users that its current central and user addresses were unaffected by the flagged activity.
This article is for information only and is not financial advice.
Source: bitcoinfoundation.org