Indian Crypto Exchange Coindcx has confirmed a major security violation which led to a loss of $ 44 million.
The main dishes to remember:
- Coindcx has had a hacking of $ 44 million caused by a server violation.
- The attack was first reported by the analyst of the Blockchain Zachxbt.
- The breach follows the 2024 Wazirx incident linked to the Lazare group in North Korea.
The feat took place early Saturday morning and was identified for the first time nearly 5 p.m. later by the Blockchain Zachxbt ‘investigator, who linked the compromise portfolio to Coindcx.
“The attacker’s address was funded with 1 ETH of Tornado Cash and then led some of the stolen funds from Solana to Ethereum,” said Zachxbt on Telegram.
Coindcx confirms security violation
Shortly after the Zachxbt post, COINTCX CEO, Sumit GUPTA, recognized hacking, blaming it on a “sophisticated server violation” which compromised an internal account used for the provisioning of liquidity on a partner platform.
GUPTA stressed that customer funds were not affected and that the company would cover the losses of its treasure.
“We collaborate with the exchange partner to block and recover the assets, in particular by soon released a Bug bonus program,” said Gupta.
He added that the coindcx portfolios used for the storage of customer assets were intact and “completely safe”.
The incident occurs almost exactly a year after the high-level Wazirx hack, which forced the offline platform and finally led to the collapse of its proposed restructuring plan.
The Lazare group, a pirate union linked to North Korea, was then linked to this attack. Until now, no group has claimed the responsibility for the Coindcx violation.
Founded in 2018, Coindcx reached unicorn status in 2021 after increasing $ 90 million to an evaluation of $ 1.1 billion.
A year later, he raised still $ 135 million, pushing his evaluation to more than $ 2 billion. In July 2024, the company acquired bitoasis from the Cryptographic Platform based in Dubai, reporting international growth ambitions.
Coindcx faces criticisms of withdrawal policies
Despite its rapid increase, Coindcx faced criticism on its withdrawal policies.
The platform does not allow for default cryptographic withdrawals, forcing users to undergo internal risk assessments to unlock the functionality.
GUPTA defended the practice in an Ama Reddit earlier this year, invoking concerns about the movement of illicit funds.
Ironically, during the same session, Gupta had expressed his confidence in Coindcx security protocols, pointing to his fundraising measures, proof of reserves and an insurance pool of $ 7 million reserved to protect users in the event of a violation.
In June, Coindcx said total assets of $ 584.2 million and nearly 20 million registered users.
Crypto investors have lost more than $ 2.2 billion against hacks, scams and violations in the first half of 2025, largely portfolio compromises and phishing attacks, according to Certik’s latest security report.
Portfolio violations alone caused $ 1.7 billion in losses on only 34 incidents, while phishing scams represented more than $ 410 million in 132 attacks.
Two major incidents, including the hacking of $ 1.5 billion by Bybit in February and the feat of $ 225 million in Cetus Protocol in May, biased the losses of the year up, representing together nearly $ 1.78 billion.
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