CoinDCX Crypto Exchange Hit by Cyberattack – $44M Drained ⚡

India’s second-largest crypto exchange, faced a cyberattack targeting its internal operational account, used for liquidity provisioning. The breach led to the draining of $44.2 million 💸, causing a ripple in the crypto community.

However, CoinDCX reassured users that no customer funds were impacted by the hack. CEO Sumit Gupta confirmed that customer assets are safe in secure cold wallets, and INR withdrawals and trading remain fully operational ✅.

CoinDCX temporarily halted its Web3 operations 🌐 as a precaution, though customer funds on the platform remain secure. Gupta stated on X (formerly Twitter):

"Today, one of our internal operational accounts was compromised due to a sophisticated server breach. I confirm that the CoinDCX wallets used to store customer assets are completely safe."

The attack was quickly contained by isolating the compromised account. Since operational accounts are segregated from customer wallets, the loss is limited to this specific account and will be absorbed by the company from its own treasury reserves 💰.

The ethical hacker ZachXBT pointed out that the breach happened around 17 hours ago. In response, CoinDCX is collaborating with its exchange partner to block and recover the stolen assets. The platform will also introduce a bug bounty program soon to further enhance security 🔒.

One Year Later...

This breach follows the $234M hack at WazirX, another Indian crypto exchange, exactly a year ago, raising concerns about the cybersecurity landscape in the Indian crypto space 🚨.

Gupta acknowledged the unsettling nature of such incidents, even when customer assets remain unaffected, and promised full transparency 🌟 throughout the investigation.

In the coming days, CoinDCX will work closely with cybersecurity experts to patch any vulnerabilities and trace the movement of the stolen funds

Stay updated on this developing story as CoinDCX strengthens its defenses and takes the necessary steps to safeguard user assets

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