CoinDCX Confirms $15.99M Loss After Compromised Wallets

Indian cryptocurrency exchange CoinDCX has confirmed a 15.99 million USDT loss tied to compromised legacy wallet infrastructure, reversing its initial denial of security breach claims reported by blockchain investigators.

According to CryptoNews, the exchange acknowledged in an October 25 statement that an October 21 incident affected older operational wallets that had been retired following a previous $44 million security breach in July 2025.

Automated Deposit Failure

CoinDCX explained that a failure in its automated deposit-sweeping service allowed cryptocurrency to accumulate at an address that customers continued using despite instructions to switch to newer wallets. Instead of abandoning the deposits, the company maintained a recovery process that credited users immediately while a separate automated service moved funds to secure operational wallets.

Blockchain investigator Darcy and security researcher ZachXBT had previously flagged suspicious transactions involving wallets linked to the exchange, noting continued activity through supposedly retired addresses. Separate analysis by Bitquery identified 88 deposits totaling approximately 15.82 million USDT accumulating in one wallet, with funds subsequently traced through intermediary wallets to deposit addresses associated with OKX, Binance, and Gate within 18 hours.

Impact and Customer Balances

CoinDCX stated that it absorbed the resulting loss, leaving customer balances, active wallets, and trading services unaffected. Tether subsequently froze approximately $2.21 million across nine wallets on October 22.

Key facts

• CoinDCX confirmed a loss of 15.99 million USDT tied to compromised legacy wallets.
• The incident occurred on October 21, affecting operational wallets retired after a July 2025 breach.
• Blockchain analytics traced funds through intermediary wallets to OKX, Binance, and Gate.
• Tether froze approximately $2.21 million across nine wallets on October 22.
• CoinDCX stated that customer balances and trading systems remained unaffected.