Coinbase Eyes CoinDCX Acquisition After $44M Hack
According to reports, Coinbase is considering acquiring CoinDCX, a leading Indian cryptocurrency exchange. This potential acquisition surfaces after CoinDCX experienced a notable $44 million hack, impacting its valuation.
Coinbase Could Acquire CoinDCX as Valuation Drops
The discussions follow CoinDCX's recovery from a significant hacking incident where unauthorized access to its operational hot wallet led to losses of approximately $44 million from trade liquidity funds. Despite containing the incident, the exchange delayed public announcement for 17 hours.
Blockchain investigators traced the attacker, with security firms detecting suspicious fund movements across multiple blockchain addresses.
At its peak, CoinDCX reached a valuation of $2.15 billion after a $135 million Series D funding round and amassed over 10 million users. However, the security breach has since reduced its valuation to below $1 billion.
Coinbase's interest in CoinDCX highlights its strategic focus on the Indian market, which boasts over 93 million crypto holders, making it one of the fastest-growing crypto regions globally.
In March, Coinbase secured a license from India’s Financial Intelligence Unit, signaling its intent to re-enter the market after facing regulatory challenges in 2022.
Currently, CoinDCX ranks 397th among centralized exchanges on CoinMarketCap, with a 24-hour spot trading volume of $14 million (119 BTC) and total assets valued at $160 million.
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