A dramatic incident has occurred in India's cryptocurrency scene as an employee of CoinDCX has been arrested in connection with a massive theft of $44 million. Rahul Agarwal, a 30-year-old software engineer, was detained by Bengaluru City police following an internal investigation by Neblio Technologies.
Theft and Employee Arrest
The incident transpired in the early hours of July 19, when hackers exploited Agarwal's work laptop credentials to gain access to CoinDCX's internal systems. The attackers initially transferred a small amount of USDT to a wallet as a test before siphoning off $44 million worth of digital assets across six wallets in a coordinated exploit.
Security Flaws and Attack
Neblio’s investigation revealed that Agarwal’s credentials were compromised through his official work-issued laptop. While Agarwal denies any direct involvement in the theft, he admitted to working part-time for several private clients, raising serious concerns about unauthorized access to sensitive systems. CoinDCX CEO Sumit Gupta stated that this may have been a 'sophisticated social engineering attack.' Gupta urged the public to avoid speculation as the investigation is ongoing.
Expectations and Company Consequences
CoinDCX has refrained from commenting on Agarwal's arrest but reiterated through a spokesperson that sharing unverified information could jeopardize ongoing investigative efforts. The exchange is reportedly collaborating with law enforcement and cybersecurity experts to trace the stolen funds and identify the perpetrators. The arrest of Agarwal has raised broader concerns about insider vulnerabilities and the risks associated with remote work setups in cryptocurrency firms.
As investigations continue, CoinDCX and its partners are focused on strengthening security infrastructure and rebuilding user trust following one of the largest crypto exchange heists of the year.
