CoinDCX, one of the largest cryptocurrency platforms in India, was exploited by hackers through a hot wallet resulting in losses of up to $44.2 million.
The incident occurred nearly 17 hours ago but was only disclosed after on-chain expert ZachXBT's announcement. The incident did not affect the cold wallets protecting customer assets and is being addressed seriously by the security team.
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CoinDCX was exploited through a hot wallet, losing $44.2 million in cryptocurrency.
The CEO asserts that customer assets are safe in cold wallets, and the loss pertains to internal operational wallets.
The team is coordinating with cybersecurity companies and partners to address the issue and upgrade security.
How much cryptocurrency did CoinDCX lose and how?
Based on the analysis by on-chain expert ZachXBT, CoinDCX lost approximately $44.2 million through an internal hot wallet exploitation. The hacker received 1 ETH from Tornado Cash and transferred part of the stolen assets from Solana to Ethereum.
ZachXBT identified suspicious wallet addresses and tracked the perpetrator through complex transactions, demonstrating the scale and sophistication of the attack.
What is the hacker's wallet address?
Three wallet addresses have been identified as linked to the incident, including:
Solana: 6peRRbTz28xofaJPJzEkxnpcpR5xhYsQcmJHQFdP22n
Solana: 3btch8cSVp3Uh2SiY9DeiRNYUBmFiBNHZQzDyecJs7Gu
Ethereum: 0xEF0c5b9E0E9643937D75C229648158584A8CD8D
How does the CEO of CoinDCX confirm this incident?
Sumit Gupta, CEO of CoinDCX, reported that the incident occurred with an internal account used to provide liquidity to partners, unrelated to the customer asset storage wallets. The CEO confirmed that there was no loss to user funds.
"All customer assets are still absolutely safe within our cold wallet system. The attack originated from a sophisticated server attack; we are collaborating with experts to investigate and resolve the issue."
Sumit Gupta, CEO of CoinDCX, June 2024
The team quickly isolated the compromised account, ensuring that withdrawal and transaction activities remained normal while compensating for losses from company funds.
What steps is CoinDCX taking to address the incident?
The company has invited specialized cybersecurity firms to investigate the cause, track the stolen funds, and collaborate with the exchange partner whose account was affected. At the same time, CoinDCX plans to implement a bug bounty program to enhance prevention.
"Every security incident is a valuable lesson. We are committed to improving security and fighting more vigorously against cyber threats in the industry."
Sumit Gupta, CEO of CoinDCX, June 2024
Why is transparency important in the cryptocurrency industry?
Transparency helps build trust among customers and investors. Proactively informing and sharing information with the community through official channels demonstrates professionalism and corporate responsibility in this volatile market.
CoinDCX has demonstrated transparency following the on-chain expert publicly revealing the incident, which is appreciated in the global cryptocurrency community.
Real-world examples of security incidents on cryptocurrency exchanges
Exchange Year Amount Lost (USD) Causes Consequences CoinDCX 2024 44.2 million Internal hot wallet exploitation Does not affect customer cold wallets, compensating from company funds Binance 2019 40 million Hacker stole through hot wallet Full compensation, security upgrade Mt. Gox 2014 450 million Poor security, lost Private Key Bankruptcy, legal intervention
Frequently Asked Questions
Is CoinDCX safe for investors?
CoinDCX is committed to protecting customer assets in cold wallets with a strict security system; the incident only affected internal wallets and did not impact user assets.
Are hot wallet attacks common?
Hot wallet exploitation is a common risk in the cryptocurrency industry, and most major platforms enhance protections to mitigate this risk.
Does CoinDCX provide regular updates on the incident?
The CEO of CoinDCX is committed to transparency and providing real-time updates on the incident resolution process as stated recently.
What should users do to protect their assets?
Users should primarily keep their assets in personal cold wallets, avoiding excessive storage in hot wallets or exchanges to minimize risk.
Can you trust bug bounty programs for security?
The bug bounty program is an effective activity that helps detect vulnerabilities in a timely manner, successfully applied by many reputable cryptocurrency exchanges.
Source: https://tintucbitcoin.com/coindcx-thiet-hai-442-trieu-usd-2/
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