CoinDCX Admits Operational Losses After $16 Million in…

CoinDCX has acknowledged that it absorbed undisclosed operational losses after deposits continued flowing into wallet addresses compromised during its July 2025 security breach. The Indian cryptocurrency exchange made the admission in an updated statement on October 22, after blockchain investigators questioned roughly $16 million in transfers tied to addresses labelled as belonging to the company.

According to CoinDCX, some customers kept sending funds to retired wallet addresses despite warnings that those addresses were unsafe. The exchange said it operates a process for collecting and securing such deposits, but conceded that the mechanism had stopped working for an unspecified period. CoinDCX said it would absorb the resulting losses, though it did not quantify them or confirm whether the full $16 million identified by investigators reflects its own exposure. The company stressed that affected customer deposits have been credited, that current wallets were not compromised and that client assets remain segregated in cold storage.

How the dispute unfolded

The scrutiny began when Darcy, co-founder of asset recovery platform FlashRescue, flagged approximately $16 million in transfers from addresses attributed to CoinDCX, including a transaction of about 15.8 million USDT on the Tron network. CoinDCX initially rejected suggestions of a fresh breach, saying the addresses had been created in January 2025, compromised in the July attack and later taken out of active use. Investigator ZachXBT disputed that account, pointing to a deposit address beginning TQKJQ that he said kept operating for around 10 months after the original breach, forwarding funds to CoinDCX's publicly identified hot wallet and receiving crypto to cover fees as recently as April and May 2026.

The latest disclosure traces back to July 19, 2025, when attackers took about $44 million from an operational account used for liquidity management. CoinDCX said at the time that the account sat apart from customer custody infrastructure and that treasury reserves would cover the loss. The investigation led to the arrest of a software engineer amid allegations that compromised credentials and malware enabled access, and the exchange introduced a recovery bounty worth up to 25% of assets traced and returned.

The company has not published a wallet-by-wallet reconciliation of the disputed transfers, the duration of the consolidation failure, or the amount of cryptocurrency that accumulated in compromised addresses and was subsequently recovered. CoinDCX has not announced a customer asset shortfall or any halt to normal trading, unlike WazirX, which faced withdrawal restrictions and restructuring after a breach exceeding $230 million in 2024.