A recent cyberattack on CoinDCX, India's second largest cryptocurrency exchange, has raised significant alarms within the crypto sector. The fraudulent scheme linked to the Lazarus group has resulted in considerable financial loss.
Details of the CoinDCX Attack
The cyberattack on CoinDCX occurred on July 18, 2025, leading to a loss of $44.2 million (₹368 crore) in just five minutes. The cybersecurity firm Cyvers discovered that the incident bears clear signs of involvement from North Korea's Lazarus group. The attack followed a known pattern similar to the one that occurred at WazirX in 2024, raising significant suspicions among experts.
According to Cyvers, the perpetrators utilized a complex setup involving multiple chains and crypto tools to move assets. During the attack, they exploited Tornado Cash and other platforms to obscure transactions.
Security Challenges in the Crypto Industry
This incident raises broader questions regarding the security of centralized exchanges. In 2024, centralized exchanges experienced a 900% increase in losses, predominantly due to access control failures and key leaks. Digital attacks are outpacing traditional monitoring methods, rendering security systems obsolete. Cyvers notes that the industry requires enhanced real-time monitoring and off-chain checks to avert further losses.
Crypto Regulations in India
The intrusion by hackers highlights the need for improved cybersecurity in the Indian crypto market. Delays in implementing crypto regulations within the country have become a major impediment. Former Finance Secretary Subhash Chandra Garg noted that the lack of clear guidelines regarding cryptocurrency use cases and trading contributes to this issue. While the U.S. advances with stringent crypto laws, India continues to hesitate, which may adversely affect the nation in the long term.
The attack on CoinDCX, attributed to the Lazarus group, underscores the vulnerability of centralized cryptocurrency exchanges and the urgent need for stringent cybersecurity regulations. The government should take steps to establish clear guidelines to protect users and prevent further losses.
