Welcome to CyberCrimesDaily in today’s article, we will find out what happened to CoinDCX? This is bad news for crypto investors. So today we will talk about two dates. Exactly one year apart between the two dates. But on the same two days, crypto investors took their breath away.
Table of Contents
What happened to CoinDCX?
About WazirX Cyber Attack
First, let’s talk about July 2024. It was July 18, the country’s largest crypto exchange, WazirX, became a target of hackers and crores of rupees were destroyed.
WazirX has not yet recovered from this crisis. July 2025 has passed. On the 19th, another crypto exchange was in danger.
About CoinDCX Cyber Attack
CoinDCX faced a cyber-attack. Once again, crores of rupees were destroyed. And then the company released their statement.
And then the debate began about how safe the entire crypto world is. People are investing money without hesitation. But a private crypto exchange is being attacked.
What to Do In Such a Situation?
What to do in such a situation? Where to go? Today we will discuss all this.
On July 19, 2025, CoinDCX became the target of a cyber-attack. CoinDCX was launched in 2018. It is a crypto exchange that offers more than 500 cryptocurrencies for trading.
Due to this security breach, about $ 44 million, i.e. about 380 crores, disappeared from the CoinDCX server. On July 20, CoinDCX published a report on this issue. The company said that hackers targeted an internal operational account of the company.
Customers’ Money Is Safe?
This account was used only for the availability of funds on a partner exchange, i.e. for liquidity. According to the report, this was due to a sophisticated server breach. The company also said that this cyber-attack will not affect its customers as their money is safe.
CoinDCX stated that since their working account is separate from the customers’ wallets, the risk is limited to this specific account only. And the Treasury Reserve is completely denying this. Where software engineer meets great UI UX designer, Sharda University comes together.
Users invest their money through this exchange. Then they get Bitcoin, Ethereum, stablecoins, etc. The company also claims that the user’s money is not lost.
Cold Wallet
Because the company also claims that the customers’ assets are kept in different cold wallets. Here assets refer to cryptocurrencies like Bitcoin, Ethereum. Cold wallet is a digital safe where cryptocurrencies are kept offline.
That is, this safe is not connected to the internet. Its main purpose is to store cryptocurrency safely. So that it can be protected from hacking, cyber-attacks or online theft.
Use of Treasury Reserve
The company also said that users can continue their transactions normally. They also said that the company will pay out money from its Treasury Reserve. This is a fund of Treasury Reserve and crypto exchanges, which is used for operational needs in case of losses in emergency situations like hacking.
Reward Bounty Program
On July 21, the company launched a reward bounty program. The company said that if people help find the lost money, a reward will be given by CoinDCX. The person who helps in recovering the property stolen in the hacking will be given a total of 25% of the reward.
This will be the largest recovery reward in India related to cryptocurrency. If all the stolen money is recovered, the reward amount can reach up to Rs 95 crore.
The company also provided information about their wallets. But the question is, how did such a major breach or cyber-attack happen? According to the company, the stolen Rs 380 crore went through many steps and finally reached two wallets.
How Did The Cyber-Attack Happen?
However, these wallets are difficult to reach. The hackers first sent the stolen crypto funds through a crypto-mixer tool called Tornado Cash. This method helps in hiding the transaction information.
Next, the hackers transferred this money from the Solana blockchain to the Ethereum blockchain. And the money was distributed across many wallets so that it became difficult to trace this money. Simply put, it was based on the basic principle of any fraud.
Money was withdrawn from one account. The transaction was made so complicated that it could not be traced. And finally, the money was circulated to different wallets or accounts.
Help From Technology Experts
With multiple transactions, it becomes more difficult to trace the money. And finally, it reached two wallets. Now, the company is seeking help from ethical hackers and technology experts to help with the recovery. It’s a different story that in its press release, the company tried to portray it as a trust-building exercise.
How Wazirx’s Wallet Was Emptied
July 18, 2024, was a significant day at the office of another crypto exchange, Wazirx. But soon, the company’s engineers noticed that money was being drained from its reserve wallet as well as from customers’ cold wallets. As soon as Wazirx’s $235 million, or about Rs 200 crore, was spotted, the hackers took it out and cleaned it out.
Read Also
- What Happened To CoinDCX? Is CoinDCX Safe?
- How To Track a WhatsApp Scammer? |What Is Image Scam?
- How Hackers are Exposing Deep Cybersecurity Vulnerabilities In AI
- How Massive Cyber-Attack Is Happening Today| Warning of 40 Major Cyber-Attacks Every Day
- Why are Passwords Important In Cybersecurity? | What Is a Strong Password?
According to Media Reports
A few days later, media reports said that the hack was carried out by the Lazarus Group, a hacking group run by the North Korean government. The hack was so large that Wazirx was forced to stop transactions from customer accounts. And to this day, Wazirx has not been able to refund customer money.
The story is different. But there are more examples. The biggest crypto hack to date occurred in March 2022, when hackers attacked the Ronin network.
They stole about 5.4-billion worth of Ethereum and USDC stable coins. Earlier, in August 2021, a hacker took advantage of a flaw in the Poly network system to steal more than 52 billion. But surprisingly, the hacker didn’t run away with all the money. He returned most of it.
A Major Security Flaw at Crypto Exchange Binance
In October 2022, a major security flaw occurred at crypto exchange Binance, due to which the exchange suffered a loss of about 5000 crore taka. According to a report by blockchain data platform Chainalysis, more than $3.8 billion worth of cryptocurrencies were stolen from crypto users in 2022.
Converting this amount to money, it would be about 33,000 crores. In 2023, a cryptocurrency worth around Rs 14,570 crore was stolen in a hacking incident. We have already told you the example of WazirX in 2024.
There Is Also an Issue of Security and Compliance.
Along with cryptocurrency and exchanges, there is also an issue of regulation, security and compliance. The picture is that some private players are operating a crypto exchange together and you and we are investing our money there. When news of a cyber-attack on a crypto exchange comes out, the claim of security and safety of the entire exchange remains a mystery.
Is CoinDCX Safe Now?
Yes Your assets remain completely safe and protected.
Is CoinDCX Banned In India?
No CoinDCX operates legally in India.
Who Is The CEO of CoinDCX?
Sumit Gupta is CEO of CoinDCX.
Which Is The Safest Crypto Exchange In India?
Mudrex is India’s most trusted crypto platform.
Conclusions
So the question is, can people’s money be stolen through a computer click? Let’s listen to the experts. First of all, it is important to understand that Bitcoin, Ethereum and other crypto assets are bearer assets. It is not a gold certificate, but rather a gold coin.
This is why they are often hacked. Because if you have it, it will be in your hands and if I have it, it will be in my hands. But beyond these symptoms, we need to understand how big of a dilemma this is.
Of course, if your money gets stolen, it’s a big problem for you. But the amount of ATM fraud, debit card fraud, UPI fraud we also see. Take care of yourself. Thank you very much.