CoinDCX, an Indian crypto exchange, has confirmed a security breach resulting in the loss of approximately $44.2 million, with customer funds remaining safe.
Incident Description
Sumit Gupta, CEO of CoinDCX, confirmed that a security breach resulted in the loss of funds from an internal operational account used for liquidity on a partner exchange. He stated, 'User funds remain safe in cold wallets.'
Discussion of Consequences
The attack was initiated by an unknown entity funding their wallet with 1 ETH via Tornado Cash, complicating tracking efforts. Gupta noted the affected account was quickly contained, and losses would be absorbed by the company's treasury.
Community and Expert Reactions
The financial impact involved $44.2 million primarily moved from Solana to Ethereum post-breach. However, market functionality persists, with trading and INR withdrawals remaining operational, although community responses differ.
CoinDCX continues investigating the breach's origins and enhancing its security, indicating a commitment to maintaining user trust and preventing future incidents.
