CoinDCX confirms losses after sweep failure on compromised old wallets, says active addresses remain safe
Crypto exchange CoinDCX has acknowledged operational losses after a process intended to secure deposits sent to old, compromised wallet addresses failed. The company has simultaneously denied any breach of its active wallets, stating that customer funds in current addresses remain secure.
In a post on X, CoinDCX explained that some users continued depositing crypto into addresses that were compromised during the July 2025 security incident. This happened even after the exchange had notified users to switch to updated addresses available on its app and website.
CoinDCX said it regularly “sweeps” deposits sent to these discontinued addresses, moving the funds so they can be accounted for and secured. However, this process failed for a period. The failure was identified on the morning of the exchange’s update.
“This failure led to some operational losses, which were absorbed by CoinDCX,” the exchange said.
The company did not disclose the exact amount lost or the duration for which the process had failed. It confirmed that all affected users’ crypto deposits had been credited to their accounts, including those sent to the discontinued addresses.
CoinDCX maintained that customer assets remained in segregated cold wallets. It added that its current central and user wallet addresses were unaffected. No funds from active wallets had been compromised, and trading continued as usual.
The latest update came after CoinDCX had described claims circulating on X about certain wallet addresses and transactions as misleading. Blockchain investigator Darcy had flagged transfers of around $16 million worth of cryptocurrency from wallets linked to CoinDCX to another wallet. According to the investigator, the funds were subsequently split across multiple addresses and routed to deposit addresses on exchanges including Binance, OKX, and Gate.
CoinDCX has not confirmed whether these amounts correspond to the operational losses it has now disclosed. In its initial response, the exchange said the flagged addresses had been created in January 2025, were compromised during the July 2025 hack, and had not been used by CoinDCX since.
Cofounder and CEO Sumit Gupta separately denied a fresh wallet breach. He said hackers appeared to be reusing the compromised addresses. Gupta stated that the exchange had checked its current central and user wallet addresses and found that none had transferred funds to the old addresses in question. He added that the team was investigating further.
The subsequent company update acknowledged that users had continued sending deposits to the discontinued addresses and that its process for securing those deposits had failed.
CoinDCX had lost around $44 million in a cyberattack in July 2025, when an internal operational account used to provide liquidity on a partner exchange was compromised. At the time, the exchange said the stolen assets belonged to its treasury, customer funds were unaffected, and it would absorb the losses. It subsequently launched a recovery bounty programme to help trace and recover the stolen assets.
The latest development has once again drawn attention to the challenges crypto exchanges face in managing legacy addresses after security incidents, even as CoinDCX insists that active user wallets remain secure.
Aachal Maniyar is a Senior Content Producer at LiveMint, where she covers US sports with a focus on major leagues, marquee events, and athlete-driven stories, while also reporting extensively on cricket and global sports. With over five years of first-hand journalism experience, she combines sharp editorial judgment with real-time sports storytelling across platforms. <br><br> Her reporting journey spans leading newsrooms including Thomson Reuters, India TV, BTVI, ET NOW, and CNBC TV18, where she has worked across breaking news, live match coverage, feature writing, interviews, video scripting, and anchoring. This multi-platform exposure has shaped her ability to deliver context-rich sports and business journalism tailored for both television and digital audiences. <br><br> Aachal has conducted and produced exclusive interviews with athletes and public figures such as India cricketer Dhruv Jurel, Indian women’s hockey captain Savita Punia, and industrialist Ratan Tata, along with several emerging and established sports personalities. Her body of work includes in-depth explainers, athlete profiles, emotionally resonant fan narratives, and data-backed match analysis across cricket, Olympic sports, and international competitions. <br><br> She holds a Master’s degree in Journalism from Symbiosis Institute of Media and Communication, Pune, and believes in reporting that is grounded in accuracy, clarity, and credibility. Her philosophy is simple: sports journalism should go beyond scores and statistics, capturing the human stories, pressure moments, and decisions that shape the game and the people who play it.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.