CoinDCX cryptocurrency exchange security incident

In October 2026, reports emerged regarding suspicious transfers totaling approximately $16 million in USDT and TRX from wallets linked to the Indian cryptocurrency exchange CoinDCX. Initially, the exchange denied a new security breach, with co-founder Sumit Gupta suggesting the activity involved addresses compromised during a previous $44 million hack in July 2025. However, blockchain investigators challenged this, noting the addresses appeared active in DeFi protocols and continued to receive user deposits.

CoinDCX subsequently confirmed the loss of approximately 15.99 million USDT and 5,784 TRX. The exchange attributed the incident to a failure in its automated deposit-sweeping service, which allowed funds to accumulate in retired wallet infrastructure that was intended to be decommissioned. CoinDCX stated it would absorb the losses using internal reserves and maintained that customer balances and trading services remain unaffected. Tether has frozen approximately $2.21 million in USDT linked to the event.

On-chain investigators, including ZachXBT, have challenged the exchange’s timeline, noting that some of the supposedly retired addresses had remained active and continued to receive deposits for months. While Tether has frozen approximately $2.21 million in USDT, CoinDCX is covering the remaining balance of the loss from its own reserves.