CoinDCX Exchange Hit by $44M Exploit; User Funds Safe
CoinDCX Suffers $44 Million Loss in Hack
Indian cryptocurrency exchange CoinDCX experienced a significant security breach on Friday, resulting in the loss of $44 million. According to reports, hackers compromised an internal account used for liquidity provisions with another exchange.
The breach was quickly addressed, with CoinDCX CEO Sumit Gupta assuring users that their funds remain unaffected. He stated that the operational account was isolated to contain the incident.
“The incident was quickly contained by isolating the affected operational account. Since our operational accounts are segregated from customer wallets, the exposure is only limited to this specific account and is being fully absorbed by us, from our own treasury reserves.”
Details of the Exploit
Onchain investigator ZachXBT noted that the attacker initially funded their address with 1 ETH from Tornado Cash. Subsequently, a portion of the stolen funds was bridged from Solana to Ethereum.
User Funds Remain Secure
CoinDCX has emphasized that user funds were not affected by this exploit. The exchange is covering the losses from its own treasury reserves.
A Reminder of Crypto Security Risks
Analyst Infinity Hedge pointed out a concerning coincidence: a year ago on the same date, Indian exchange WazirX was hacked for $235 million. This incident serves as a stark reminder of the ongoing cybersecurity challenges within the cryptocurrency industry.
As the blockchain landscape evolves, security remains paramount. Platforms like Codeum play a vital role in ensuring the safety of digital assets through:
- Smart contract audits
- KYC verification
- Custom smart contract and DApp development
- Tokenomics and security consultation
Codeum partners with launchpads and crypto agencies to foster a secure blockchain ecosystem.
This is a developing story, and further information will be added as it becomes available.