CoinDCX, one of the largest cryptocurrency exchanges, faced a hacking incident resulting in a $44 million loss. CEO Shivam Gupta confirmed the details and provided comments on the aftermath.
Incident Overview
Shivam Gupta confirmed that the loss resulted from a compromised account linked to liquidity provisioning, emphasizing that customer funds were not affected.
CoinDCX's Response and Recovery Measures
Gupta described the incident as a 'sophisticated server breach'. He pledged that CoinDCX would fully absorb the losses using its own treasury reserves. The team is working with the affected partner exchange to freeze and recover stolen assets and plans to launch a bug bounty initiative to prevent similar incidents in the future.
Criticism and Platform Security
The hacking incident has reignited criticism over CoinDCX’s withdrawal restrictions, which require enhanced internal checks before users can move their funds off the platform. Despite the pressure, Gupta defended the policy as a necessary step to prevent illicit fund movement. CoinDCX, which boasts nearly 20 million users and over $584 million in total holdings, maintains that its core infrastructure remains intact.
Despite the incident, CoinDCX continues to emphasize trust in its platform and the security of user assets. Plans for improved security and transparency remain key aspects in responding to the situation.
