Indian cryptocurrency exchange CoinDCX has acknowledged operational losses linked to a failed process for moving deposits from wallets that had previously been compromised, after blockchain investigators questioned roughly $16 million in transfers associated with the addresses.
The exchange said it absorbed the losses and credited all affected user accounts. It also maintained that its current wallets were not affected, no funds from active wallets had been compromised and customer assets remained in segregated cold wallets.
The admission came after scrutiny of wallet activity connected to CoinDCX’s July 2025 security incident. According to Cointelegraph, the exchange said on X that some users continued sending crypto to addresses compromised in that hack, despite warnings not to use them.
Failed transfer process behind the losses
CoinDCX said it routinely moved deposits out of the old compromised addresses so the funds could be secured and properly accounted for. However, that process had stopped working for an unspecified period.
The company described the resulting shortfall as “operational losses” and said it had absorbed the impact itself. CoinDCX did not disclose the exact amount of the losses in the statement, but said every affected deposit had been credited to the relevant users’ accounts.
The exchange’s explanation was intended to clarify approximately $16 million in transfers flagged by Darcy, co-founder of digital-asset recovery platform FlashRescue. The transfers originated from addresses identified as belonging to CoinDCX.
CoinDCX had initially said the addresses were created in January 2025, compromised in July of that year and no longer used by the exchange after the incident. Its later statement added that deposits had continued to reach some of those addresses after the compromise.
Investigators questioned continued address activity
Blockchain investigator ZachXBT challenged the exchange’s earlier account. He said a CoinDCX deposit address remained in use by a liquidity provider for 10 months after the July 2025 incident.
According to that account, the address continued sending user deposits to CoinDCX’s current public hot wallet and receiving funds to pay transaction fees. CoinDCX CEO Sumit Gupta said the company was investigating further and assured users that no user funds would be lost.
The background to the dispute is a $44 million hack that affected CoinDCX in July 2025. At the time, the exchange said customer wallets were separate from the account involved and promised to cover the loss from treasury reserves. In its latest update, CoinDCX again said current wallets and segregated cold-storage customer assets were unaffected.
Crypto market picture
Moneyiar market data at 11:13–11:14 p.m. on Oct. 22, 2026, showed declines across the four tracked assets over 24 hours:
- Compound (COMP): $24.3146610566, down 4.92% in 24 hours and up 8.82% over seven days.
- Walrus (WAL): $0.0377311633, down 3.47% in 24 hours and 25.18% over seven days.
- ECOMI (OMI): $0.0002743307, down 4.63% in 24 hours and up 5.14% over seven days.
- RedStone (RED): $0.1397577442, down 5.9% in 24 hours and 10.3% over seven days.
These market figures are separate from the CoinDCX wallet disclosures and do not indicate the value of the exchange’s reported operational losses.
