According to Deep Tide TechFlow, on July 20, CoinDCX CEO Sumit Gupta disclosed that an internal operational account used for providing liquidity at partner exchanges was compromised due to a sophisticated attack on the server. Gupta emphasized that user funds are completely safe and the wallets used by CoinDCX to store customer assets were unaffected.
The affected operational accounts have been swiftly isolated. Since the operational accounts are separate from customer wallets, the losses are limited to that specific account and will be fully covered by CoinDCX's own treasury reserves. All trading activities and INR withdrawal functions are operating normally.
The internal security and operations team at CoinDCX is investigating the matter with leading cybersecurity partners, patching vulnerabilities and tracking the flow of funds. The company is working with exchange partners to block and recover assets and plans to launch a bug bounty program.
Earlier reports revealed that on-chain detective ZachXBT disclosed that the Indian exchange CoinDCX may have been hacked, resulting in a loss of approximately $44.2 million.