The Indian cryptocurrency exchange CoinDCX is reportedly hacked, causing losses of approximately $44.2 million, according to blockchain expert ZachXBT and security firm Cyvers. The exchange's CEO confirmed that an internal wallet was compromised. However, he asserted that customer funds remain safe.
The CoinDCX Hack Originated from Tornado Cash Funding
Today, ZachXBT reported the incident and stated that an attacker address received 1 ETH through Tornado Cash, then transferred funds from Solana to Ethereum. The asset flow indicates a coordinated cross-chain money laundering strategy.
Meanwhile, on-chain data confirms the transfer of funds through multiple addresses and protocols. The compromised wallet was not included in CoinDCX's published proof of reserves report, thus requiring manual tracking.
Cyvers discussed this hack in an exclusive commentary with BeInCrypto.
This attack is part of a recent wave of transaction breaches – including Bybit, WazirX, and other exchanges – serving as a clear reminder that centralized platforms remain prime targets for sophisticated access control attacks. In the second quarter of 2024 alone, over 65% of losses on Web3 stemmed from incidents related to CEX, with nearly $500 million lost due to wallet access breaches. These are not isolated incidents – they are systemic vulnerabilities.
We urge exchanges to reassess their security systems and go beyond passive defensive measures. Real-time wallet monitoring and preventive solutions like Cyvers' Threat Interceptor are no longer optional – they are essential to ensure your platform does not become the next focal point.” Meir Dolev, CTO of Cyvers, stated.
CoinDCX Confirms Breach, States User Funds Are Still Safe
Co-founder and CEO of CoinDCX, Sumit Gupta, confirmed the incident hours after ZachXBT's post. He clarified that the incident involved an internal wallet used to store liquidity on a partner exchange, not a user wallet.
According to the platform's statement, it is investigating the server breach that led to the incident. Since then, the platform has frozen the affected internal systems and is working with security experts to prevent further issues.
The initial breach was detected by Cyvers Alerts, a blockchain threat intelligence company, which reported suspicious withdrawal transactions from CoinDCX's hot wallet. The funds were quickly transferred through multiple different wallets, complicating traceability.