CoinDCX, the leading cryptocurrency exchange in India by trading volume, has revealed it is absorbing nearly 16 million dollars in losses following a breakdown in its internal fund management processes. The situation came to light after independent blockchain investigators flagged suspicious movements of capital from wallets associated with the Mumbai-based firm. While the exchange initially brushed off these concerns as false alarms, further scrutiny proved that customer deposits were still flowing into outdated accounts that should have been dormant.
The root of the problem traces back to a major security breach in July 2025 that resulted in a significant loss for the company. Following that event, CoinDCX deprecated several wallets to protect its ecosystem. However, some users continued to send funds to these retired addresses. To maintain trust, the exchange credited users’ account balances immediately upon receipt of these deposits, relying on an automated sweeping service to eventually migrate those funds into their secure primary wallets. When this backend process failed, millions of dollars remained sitting in vulnerable legacy accounts where they were ultimately lost.
In a recent admission via a company blog post, CoinDCX acknowledged that while active trading systems and cold storage remain secure, they could have handled the communication regarding this lapse more proactively. The company noted that it took time to conduct a full forensic review of the deprecated infrastructure before confirming exactly what went wrong. Despite the financial hit taken by the corporate entity, officials insist that individual user balances were not impacted because the platform had already honored the deposits internally.
