CoinDCX, a Mumbai-based cryptocurrency exchange, faced a significant breach resulting in a loss of $44 million from its operational funds. This incident raises concerns about the security of centralized exchanges.
CoinDCX Hack
The CoinDCX hack resulted in a **$44 million loss**, primarily affecting operational liquidity rather than customer funds. The breach was identified by blockchain researcher ZachXBT. Meir Dolev, CTO of Cyvers, advocated for improved security protocols.
Operational Losses and Strategies
Operational losses were incurred from a wallet compromised with **1 ETH from Tornado Cash**. Funds were laundered through **cross-chain** movements. CEO Sumit Gupta reassured the community about transparency, confirming that **customer assets were unaffected**.
Expert Opinions and Risks
CoinDCX absorbed the financial impact internally, ensuring customer holdings remain intact. "We have always believed in being transparent with our community, hence I am sharing this with you directly," said CEO Sumit Gupta. **Industry experts** highlight the systemic weaknesses in CEX security, urging better real-time monitoring and preemptive defense systems.
The recent CoinDCX incident underscores the necessity of re-evaluating the security of centralized exchanges. According to experts, approximately 65% of Web3 losses stem from hacking incidents at CEX. This situation serves as a reminder of the importance of implementing more effective practices and regulations in the sector.
