Indian crypto exchange CoinDCX said abnormal activity was detected in its system on Oct. 21, and an internal investigation traced the issue to a deprecated wallet infrastructure. The company said the affected setup had already been abandoned after it was compromised in a security incident on July 19, 2025, but an unknown vulnerability remained. CoinDCX said an automatic sweeping service failed for a period of time, allowing funds mistakenly deposited by some users into deprecated addresses to accumulate there. That eventually resulted in a loss of 15.99 million USDT, which the company said it has fully absorbed. CoinDCX added that its current trading and wallet systems were not affected, user assets are stored in segregated cold wallets, and deposits, withdrawals, and trading had operated normally over the past 72 hours. The exchange also said it will step up monitoring of legacy systems. In the comment section, Darcy, chief marketing officer at security firm Salus, called the explanation 「a clumsy lie」.
Indian crypto exchange CoinDCX said it detected abnormal activity in its system on Oct. 21, then found that the issue involved a deprecated wallet infrastructure.
According to the company, that infrastructure had already been compromised in a security incident on July 19, 2025 and was later abandoned, but an unknown vulnerability remained. CoinDCX said an automatic sweeping service stopped working for a period, and some user funds mistakenly sent to deprecated addresses accumulated there. The company said that process ultimately led to a loss of 15.99 million USDT.
CoinDCX said the loss has been covered by the company.
The exchange also said its current trading and wallet systems were not affected. User funds are stored in segregated cold wallets, and deposits, withdrawals, and trading have functioned normally over the past 72 hours. CoinDCX said it will strengthen monitoring of legacy systems going forward.
In the comment section, Darcy, chief marketing officer at security firm Salus, responded by calling the explanation 「a clumsy lie」.
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