India’s leading cryptocurrency exchange, CoinDCX, has fully resumed withdrawals after a massive $44 million CoinDCX hack that shocked the crypto community. The company confirmed that no user funds were affected, and operations have now returned to normal.
Internal Wallet Targeted in Sophisticated CoinDCX Hack
The CoinDCX hack occurred on July 19, 2025, when the exchange’s internal treasury wallet, used for liquidity on third-party platforms, was compromised. The attackers managed to siphon off approximately $44.2 million, mainly in Solana (SOL) and Ethereum (ETH). Blockchain investigator ZachXBT first identified the irregular movement of funds, which were traced through bridges from Solana to Ethereum and eventually routed through the controversial privacy tool Tornado Cash.
Despite the scale of the breach, CoinDCX made it clear that only operational funds were impacted. User balances, trading accounts, and assets remained untouched, as they were stored in separate, secure wallets.
CoinDCX Rebuilds Trust With Transparent Actions
CoinDCX quickly suspended deposits and withdrawals on July 20, shortly after the attack, as a precaution. In the days following the breach, the company conducted a thorough internal investigation, collaborated with blockchain security firms, and implemented additional layers of protection.
On August 2, 2025, CoinDCX announced that it had resumed full withdrawal services. The company also published a post-mortem and reassured its users with this statement:
“The exploit affected one of our internal wallets that supports liquidity provisioning. We have now strengthened our systems and can confirm that no user funds were lost.”
Background: CoinDCX’s Position in the Indian Crypto Market
Founded in 2018, CoinDCX is one of India’s largest cryptocurrency exchanges. Headquartered in Mumbai, it has over 15 million registered users and provides a wide range of services, from trading to staking and investing in crypto portfolios. Backed by investors like Coinbase Ventures and Polychain Capital, CoinDCX was valued at $2.15 billion as of its last funding round.
This latest CoinDCX hack is one of the most significant crypto-related breaches in India’s history. However, by handling the crisis with transparency and swift recovery, CoinDCX may have limited long-term damage to its reputation.
Crypto Community Reacts to CoinDCX Hack
The crypto industry has seen multiple large-scale hacks in recent years. In 2022, FTX and Ronin Network were among the most high-profile victims. CoinDCX’s proactive response—pausing operations, updating users, and restoring services—has drawn positive feedback from many in the Indian crypto community.
Some users have urged CoinDCX to enhance bug bounty programs, perform regular security audits, and consider adopting multi-signature wallet systems to prevent similar breaches in the future.
What’s Next for CoinDCX?
Following the incident, CoinDCX said it is reassessing its security architecture and introducing stricter wallet access controls. It is also working with law enforcement and international crypto forensic firms to trace the attackers and potentially recover the stolen funds.
The company has promised more transparency reports in the coming weeks and plans to launch a security awareness initiative aimed at educating users on safeguarding their crypto assets.
