CoinDCX claims that customer money is “100% safe” following the $44 million theft by hackers.
A “sophisticated server breach” that infiltrated one of CoinDCX’s internal operational accounts led to the theft of $44.2 million, or Rs 378 crore, the largest domestic cryptocurrency exchange in India. After this, regular investors began to fret about their money. The cryptocurrency exchange, however, claimed that the clients’ funds were “completely safe.”
According to CoinDCX’s First Incident Report, which was made public on Sunday, the company is using its treasury reserves to absorb the whole exposure.
Today, a sophisticated server breach compromised one of our internal operational accounts, which are only used for provisioning liquidity on a partner exchange. I certify that there is no impact and that the CoinDCX wallets used to hold client assets are secure. Our clients won’t suffer any losses as a result of this. In a post on X, CoinDCX co-founder Sumit Gupta stated that CoinDCX would be covering the entire cost.
“A total of USD 44 million in our treasury assets was gone. These losses will be borne by Coindcx Treasury,” Neeraj Khandelwal, another co-founder, stated.
Customer Anxiety
Social media sites have been inundated with consumer complaints over the past few days regarding bad customer service, app bugs, and withdrawal delays. Numerous users report that they were unable to move their fiat money or cryptocurrency holdings from the platform, raising concerns about a potential liquidity crisis or worse.
“CoinDCX, wow. I can’t access my wallet or dashboard because you guys were hacked a few hours ago. A user on X remarked, “At least tell your customers. Keeping them in the dark won’t help #digitalindia startup has week foundations from Day 1.”
The inability to withdraw funds was another issue raised by users.
“Hi @CoinDCX, I’ve done everything that was instructed in the email, kyc, and instructions, but I still can’t withdraw my money. Are you the wizirx farjii type?” a user wrote.
The event highlights the growing security risks in the extremely unstable cryptocurrency market once more.
One of the largest such heists in Indian history occurred last year when the cryptocurrency exchange WazirX was hacked, resulting in the loss of almost $230 million. The theft had damaged attitudes and led to a careful review of safety protocols.
What’s The Update?
The co-founders have announced the restoration of the Portfolio APIs.
According to the company, CoinDCX operations are still proceeding as usual, and the impacted infrastructure has been totally isolated.
The problem has been reported to the Indian Computer Emergency Response Team, or CERT-In. It further stated that thorough forensics are being conducted with two internationally renowned security agencies, and reports would be made public for the public’s benefit.
“CoinDCX services are still completely functional. There is still trading activity, INR deposits, and INR withdrawals. Withdrawals of INR less Rs 5 lakh will appear in your account in 5 hours, while withdrawals beyond Rs 5 lakh will take 72 hours to process. The business said, “The incident was isolated and has no effect on your portfolio access or operations.”