CoinDCX, one of the largest centralized cryptocurrency exchanges in India, recently suffered a cybersecurity attack with losses of approximately $44.2 million.
CoinDCX's team affirms that customer asset storage wallets are completely secure thanks to cold wallet infrastructure, and transaction and withdrawal activities are proceeding normally. They are currently coordinating with cybersecurity partners to address the incident.
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CoinDCX was attacked, losing approximately $44.2 million through a hot wallet due to a server vulnerability.
The cold wallet storing customer assets is unaffected, ensuring absolute safety.
The security team collaborates with partners to investigate, rectify, and trace the flow of funds.
How was CoinDCX hacked and what is the scale of the damage?
The attack targeted an internal operating account of CoinDCX, resulting in losses of up to $44.2 million, according to analysis by expert ZachXBT in mid-July 2024.
The attacker began transferring 1 ETH from Tornado Cash and then bridged part of the stolen funds from the Solana Blockchain to Ethereum. CoinDCX's hot wallet was not publicly flagged in the current reserve evidence, complicating the accurate assessment of damages.
Evidence and analysis of the incident from ZachXBT
The withdrawal of funds from Tornado Cash and transfer across multiple blockchains indicates a well-organized money laundering plan, complicating the tracing process.
ZachXBT, On-chain Expert, July 2024
Official response from CoinDCX regarding the incident
Sumit Gupta, CEO of CoinDCX, confirms that the internal account used to provide liquidity to partner exchanges was hacked due to a complex server security flaw, but the wallet containing customer assets is stored in cold wallets and is completely secure.
Commitment to protect assets and ensure continuous operations
No customer funds were affected, and all transactions and INR withdrawals are proceeding normally. We are enhancing coordination with security partners to rectify any vulnerabilities and monitor the flow of funds.
Sumit Gupta, CEO of CoinDCX, 19/7/2024, official Twitter
What measures is CoinDCX taking to deal with the aftermath?
CoinDCX and the internal security team are closely collaborating with specialized partners to fix security flaws, trace the stolen funds, and coordinate with other exchanges to freeze and recover assets.
The bounty program for identifying vulnerabilities is set to be launched soon.
To enhance security, CoinDCX is preparing to launch a bounty program for those who identify security vulnerabilities to prevent similar incidents in the future.
Frequently asked questions about the CoinDCX hack
1. Are CoinDCX users' assets safe?
CoinDCX's cold wallet storing customer assets is completely safe and unaffected by the attack. The company has committed to protecting users' assets.
2. How much money was lost and where did it come from?
Approximately $44.2 million was stolen from internal operating accounts through a hot wallet, unrelated to customer asset storage wallets.
3. What has CoinDCX done to mitigate risks after the hack?
The company is coordinating with security partners to patch vulnerabilities, monitor the flow of funds, and prepare a bounty program to identify further security weaknesses.
4. Are transactions and withdrawals on the exchange still operating normally?
Transactions and withdrawals in Indian Rupees are still running smoothly and without interruption due to this incident.
5. What do users need to do to protect their accounts?
Users should regularly update their security, enable two-factor authentication, and monitor notifications from the exchange to ensure account safety.
Source: https://tintucbitcoin.com/coindcx-nghi-mat-442-trieu-usd/
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