CoinDCX Hacked: $44M Stolen, Funds Laundered Via Tornado Cash
Indian crypto exchange CoinDCX has confirmed a security breach resulting in the loss of approximately $44.2 million. According to blockchain investigator ZachXBT and security firm Cyvers, the stolen funds were laundered using Tornado Cash.
CoinDCX Hack: Details of the Breach
The breach was initially detected by Cyvers Alerts, which noticed suspicious withdrawals from CoinDCX’s hot wallet. ZachXBT reported that the attacker funded an address via Tornado Cash before bridging assets from Solana to Ethereum, indicating a coordinated cross-chain laundering strategy.
Key details:
- Amount Stolen: Approximately $44.2 million
- Laundering Method: Funds transferred via Tornado Cash
- Cross-Chain Activity: Bridging from Solana to Ethereum
Cyvers' Commentary on the Incident
Cyvers CTO Meir Dolev provided exclusive commentary, highlighting the systemic weaknesses in centralized exchanges (CEXs):
“This hack is part of a recent wave of exchange breaches – including Bybit, WazirX, and others – are stark reminders that centralized platforms remain prime targets for sophisticated access control attacks. In Q2 2024 alone, over 65% of losses in Web3 originated from CEX-related incidents, with nearly $500 million lost due to wallet access breaches. These are not isolated events – they’re systemic weaknesses. We urge exchanges to rethink their security posture and move beyond reactive defenses. Real-time wallet monitoring and preemptive solutions like Cyvers’ Threat Interceptor are no longer optional – they’re essential to ensure your platform doesn’t become the next headline.”
CoinDCX Response: User Funds Safe
CoinDCX Co-founder and CEO Sumit Gupta addressed the incident, confirming that an internal wallet used for liquidity provisioning on a partner exchange was compromised. He emphasized that user funds remain secure.
Hi everyone,
At @CoinDCX, we have always believed in being transparent with our community, hence I am sharing this with you directly.
Today, one of our internal operational accounts – used only for liquidity provisioning on a partner exchange – was compromised due to a… pic.twitter.com/L1kZhjKAxQ
— Sumit Gupta (CoinDCX) (@smtgpt) July 19, 2025
Immediate Actions Taken
- Affected internal systems have been frozen.
- Security experts are engaged to contain the incident.
- An investigation into the server breach is underway.
Codeum emphasizes the importance of robust security measures in the blockchain space. We offer smart contract audits, KYC verification, and custom DApp development to help protect your assets. Contact us for a comprehensive security consultation to prevent future incidents.
This is a developing story.