Coinbase, the American cryptocurrency exchange, is reportedly in advanced discussions to acquire the Indian crypto exchange CoinDCX. The deal comes after a recent hack of CoinDCX involving a loss of $44 million.
Negotiations for Acquisition of CoinDCX
Coinbase is reportedly in advanced discussions to acquire CoinDCX, in which it already holds a stake. According to local news reports, the deal would be valued at less than a billion dollars. One source indicated that "Coinbase sees this as a long-term strategic bet," adding that "buying CoinDCX at this discounted valuation is essentially a low-cost gamble—positioning itself for potential upside if India’s crypto market eventually matures."
CoinDCX Recovers from Hack
This situation arises about 11 days after CoinDCX suffered a $44.2 million hack on July 18, when attackers breached an operational wallet and drained it within minutes. CoinDCX has assured that all customer funds remained unaffected.
Other Possible Coinbase Deals in India
According to the source, another option being considered is to combine Coinbase’s stakes in CoinDCX and CoinSwitch, another large Indian crypto exchange. However, no formal talks are currently underway. In March, Coinbase registered with India’s Financial Intelligence Unit, possibly signaling its intention to expand its presence in the country.
In summary, amid growing competition in the Indian crypto market, Coinbase is exploring strategic expansion opportunities, including the potential acquisition of CoinDCX after the recent hack.
