Attacker used Tornado Cash to fund wallet, then bridged assets from Solana to Ethereum chain.
Compromised account not listed in CoinDCX’s Proof of Reserves, requiring manual attribution of stolen funds.
CEO confirmed breach was internal; public alert issued 17 hours later, triggering trust concerns in crypto circles.
CoinDCX exploit involving $44.2 million has stirred industry-wide concern following a delay in public disclosure and unclear wallet attribution. The Indian crypto exchange is now under scrutiny over transparency and operational security.
$44.2M Drained, No Immediate Alert Issued
A tweet by cryptothedoggy revealed that India’s top centralized exchange, CoinDCX, experienced a $44.2 million outflow nearly 17 hours before any official notice. The attacker initially used 1 ETH from Tornado Cash and bridged funds from Solana to Ethereum. Three wallet addresses linked to the outflow include two Solana-based addresses and one Ethereum address:
https://twitter.com/cryptothedoggy/status/1946609638688055516
6peRRbTz28xofaJPJzEkxnpcpR5xhYsQcmJHQFdP22n
3btch8cSVp3Uh2SiY9DeiRNYUBmFiBNHZQzDyecJs7Gu
0xEF0c5b9E0E9643937D75C229648158584A8CD8D2
The affected wallet was not part of CoinDCX’s Proof of Reserves and lacked any public tags, making attribution difficult. Blockchain investigators traced the funds manually, raising concerns over the speed and readiness of CoinDCX's monitoring systems.
CoinDCX CEO Sumit Gupta addressed the issue publicly, stating, “One internal account (used for liquidity on a partner exchange) was compromised via server breach. Customer funds are safe.” However, the combination of a compromised internal wallet, a 17-hour silence, and no immediate transparency led to wider industry questions.
Crisis of Trust as Transparency is Questioned
The CoinDCX exploit has not only raised concerns about cybersecurity practices but also trust within the community. The lack of immediate public disclosure intensified doubts. Many believe communication should have come sooner, especially given the size of the unauthorized transaction.
While customer assets were reportedly unaffected, observers questioned why the affected wallet lacked visibility in CoinDCX’s public records. The use of Tornado Cash further complicated the investigation, as the attacker’s on-chain trail was obscured from the beginning.
As cryptothedoggy emphasized, this issue represents more than a technical breach — it’s about trust. “Transparency isn't optional in crypto — it’s currency,” the tweet noted. CoinDCX will now be expected to improve its operational clarity and public response protocols going forward.
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