CoinDCX admits ‘operational losses’ after $16M wallet transfers draw scrutiny

CoinDCX said it covered losses caused by a failed transfer process involving compromised wallets and credited all affected user accounts.

Update (Oct. 22, 12:32 pm UTC): This article has been expanded and its headline updated following CoinDCX’s admission of operational losses and its further explanation of the flagged wallet activity.

Indian cryptocurrency exchange CoinDCX admitted losses from a failure to move deposits out of previously compromised wallets after investigators challenged its explanation for about $16 million in suspicious transfers.

In a statement posted on X Thursday after this article’s initial publication, CoinDCX said some users continued depositing crypto into addresses compromised during its July 2025 hack despite warnings to stop.

The exchange said it regularly transfers deposits out of those old addresses to secure and account for the funds, but that process had failed for an unspecified period.

“This failure led to some operational losses, which were absorbed by CoinDCX,” the exchange said.

CoinDCX added that all affected deposits had been credited to users’ accounts and maintained that its current wallets were unaffected, no funds from active wallets had been compromised and customer assets remained in segregated cold wallets.

Darcy, co-founder of asset recovery platform FlashRescue, earlier on Thursday flagged about $16 million in transfers from addresses labeled as belonging to CoinDCX.

CoinDCX had not responded to Cointelegraph’s inquiry at the time of this update.

Investigators challenge CoinDCX’s initial account

CoinDCX’s latest explanation followed an earlier statement in response to Darcy. It said that the flagged addresses were created in January 2025, compromised in July that year and had not been used by the exchange since.

Blockchain investigator ZachXBT challenged that account, saying a CoinDCX deposit address remained in use by a liquidity provider for 10 months after the July 2025 incident. He said the address continued transferring user deposits to CoinDCX’s current public hot wallet and receiving funds to cover transaction fees.

“Yes, aware of that. We’re investigating it further, and will share an update soon,” responded Sumit Gupta, CEO of CoinDCX. “We assure that no user funds will be at loss.”

CoinDCX lost $44 million in the July 2025 hack. The exchange said at the time that customer wallets were separate from the affected account and that it would cover the loss from its treasury reserves.

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