History so far: On July 19, the Crypto Exchange Coindcx updated users that one of its internal accounts had been “compromised”. The leaders of the company reassured investors and panicked traders that their assets were safe and that access to their crypto would not be cut.
Despite insurance, many Coindcx customers have decided to withdraw their assets, perceiving the event could turn into something like Wazirx’s hack last year.
What happened to Coindcx?
Coindcx is an exchange of an inscribed Indian cryptocurrency (CFIU), founded in 2018 by Neeraj Khandelwal and Sumit Gupta, now counting more than 1.6 crores recorded. On July 19, the exchange shared that one of its “internal operational accounts, used only for liquidity supply on an exchange of partners, was compromised due to a violation of sophisticated server.” Khandelwal said that it is unauthorized access to a hot (practically connected) operational portfolio on an exchange of partners.
Coindcx declared a financial exhibition of approximately $ 44 million, but stressed that the incident was contained by isolation of the affected account, which was separated from the company’s client’s client’s portfolios. The exchange also added that exposure was limited to this amount alone and that it would be completely absorbed by Coindcx by its own reserves.
“The incident has been officially reported to a certificate, and we are working actively with the main Blockchain legal medicine companies and ecosystem partners to trace the attacker and recover assets,” said Coindcx in his incident report, and provided information on the cross movement of stolen assets.
The company has also announced a recovery premium program.
How were Coindcx users affected by hacking?
Coindcx has repeatedly stressed that customer funds were secured and not affected by hacking, as they were placed in separate cold wallets that are difficult for attackers to rape. The company also said that trade, rupees and rupered withdrawals remained fully functional throughout the period. However, some customers have complained that their requests for withdrawal have taken time to be processed, arousing the fears that their funds have been frozen.
Coindcx founding partner Mridul Gupta said that “the operational challenges caused by high withdrawal volumes during non-Banc hours” had resulted in delays but refused allegations of frost. The company then confirmed that all withdrawal requests had been successfully processed. Although crypto withdrawals are not possible for everyone using Coindcx, this is a preexisting situation that is part of the company’s risk policy and has not been caused by the hack itself.
In addition, the exchange has been faced with a time limit for 17 hours regarding the update of customers on hacking. Coindcx defended his actions and said that he should have all the information before publishing a declaration to customers, but said that the investigation agencies had been immediately informed and integrated.
“Our first priority is always to act, not only to speak. Before making a public declaration, we had to make sure that the threat was fully contained, our platform was secure and all customer funds were safe. Communicating with incomplete or not verified information would have been drilling and could have caused unnecessary panic, “said co-founder Sumit Gupta.
Other Coindcx users have raised complaints concerning temporary price reductions for certain assets, as well as certain tokens under maintenance, which the company also addressed.
How are Coindcx and Wazirx hacks different?
A little over a year ago, on July 18, 2024, Wazirx was targeted by North Korean cyber-volers. On that day, a multi-signature portfolio that Wazirx Exchange managed with the company Liminal was operated, resulting in the loss of assets worth more than $ 230 million. This was much higher than the losses reported by Coindcx; Wazirx customers’ assets have been directly affected by this violation.
After a lot of delay and confusion, Wazirx blocked user access to their crypto for an indefinite period and recognized significant losses. On the other hand, Coindcx stressed that it was as usual for the scholarship, noting on X that its annual income exceeds 1,100 lasting.
Wazirx customers demanded that the company use its own profits or funds to cover losses, but the company said it was not possible, citing a property dispute with the international crypto exchange. Wazirx has also decided to carry out its legal restructuring exercise in Singapore.
Wazirx users have not been able to access their crypto locked for more than a year and should vote for the second time on the modified arrangement scheme. This occurs after the first proposed restructuring plan has been rejected by the High Court of Singapore.
Wazirx and Coindcx were struck by criticisms for delays in the information of their customers of their respective hacks.
What is the lesson for cryptographic investors in India?
Investors in India must remember that crypto trading is a largely unregulated activity in the country; Even users of centralized exchanges registered by the FIU can expect little or no support for the Indian authorities in the event of a crisis such as a security violation.
Satnam Narang, principal engineering engineer for staff at Tenable, said that if users want a total control of their parts, they should consider car-cooked options such as a cold-line material portfolio that they control directly. Even here, reasonable diligence is necessary to buy only material portfolios of trust in legitimate sellers, according to him.
“While more and more exchanges have been implemented worldwide, we have seen attack reports targeting intelligent contract defects or other ways to fly funds to these exchanges, including, but without limiting themselves, the flight of references or private keys or targeting a third -party society that works with targeted organization,” said Narang, noting that the Hack Last efforts by Crostocurrency Breash, noting that Coindcx’s attack was one of the largest of the greatest cryptocurn year.
He stressed that when cryptography prices increase, there is also an increase in attacks on exchanges and customers. Mr. Narang said that traders storing parts on cryptography exchanges should use multi-factory authentication and solid passwords, or store their parts safely, if possible.
“There is an old adage in the cryptocurrency space that says:” Not your keys, not your crypto / parts “. As long as users store their cryptocurrency on an exchange, these parts do not necessarily belong to them because the exchange could prohibit their account or an exchange hacking could lead to the loss of parts,” said Narang.
Published – July 26, 2025 08:00 AM Ist
