CoinDCX Denies Fresh Hack Following $16M Outflow From Retired Addresses

CoinDCX has dismissed claims of an active security breach after on-chain analysts flagged roughly $16 million in suspicious asset transfers from addresses linked to the Indian digital asset trading platform ¹. The exchange maintained that its current central infrastructure and active user wallets remain unaffected, describing the transactions as activity on deprecated addresses compromised during a previous security incident ¹.

Blockchain observers initially highlighted the transfers on Oct. 21, tracing approximately $16 million worth of $USDT and Tron's $TRX routed to a single Tron network address ¹. The destination wallet subsequently disbursed the funds across multiple counterparties, with the single largest transaction totaling 15,819,002 USDT ¹. CoinDCX Chief Executive Officer Sumit Gupta categorized the alerts as a false alarm, asserting that the perpetrators of a July 2025 compromise—which resulted in roughly $44 million in losses—were reusing retired infrastructure ¹. At the time of writing, USDT traded at $0.9986, while broader crypto markets recorded a neutral reading on market sentiment.

Analysts Question Infrastructure Deprecation

Independent on-chain investigator ZachXBT disputed the exchange's explanation, providing data indicating that one flagged deposit address remained operational well after the July 2025 breach ¹. According to ZachXBT, a liquidity provider utilized the address across a 10-month span, forwarding aggregated customer deposits and receiving operational network fees directly linked to CoinDCX's primary hot wallet as recently as April and May 2026 ¹. Analysts had earlier placed CoinDCX under scrutiny over $16M transfers originating from historical addresses.

CoinDCX acknowledged that despite historical notices directing customers to update their accounts, certain users continued transmitting funds to outdated destinations ¹. The firm stated that an internal mechanism intended to sweep assets out of legacy addresses temporarily failed, resulting in operational losses ¹. CoinDCX stated it fully credited all impacted depositors and that standard trading services remain uninterrupted ¹.