--- title: "CoinDCX Denies Fresh Hack Following $16M Outflow From Retired Addresses" description: "The Indian exchange attributed the movements to addresses compromised in July 2025, absorbing operational losses from sweeping errors." url: https://basisdesk.news/news/coindcx-denies-hack-16-million-deprecated-wallet-outflow published: 2026-10-23T08:06:49.701Z modified: 2026-10-23T08:06:49.701Z section: Security & Hacks author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: neutral tickers: [USDT, TRX] tags: [coindcx, exchanges, tron, usdt, exploits, zachxbt] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # CoinDCX Denies Fresh Hack Following $16M Outflow From Retired Addresses The Indian exchange attributed the movements to addresses compromised in July 2025, absorbing operational losses from sweeping errors. ## At a glance - **What happened:** CoinDCX denied a new compromise after blockchain analysts tracked $16 million moving from deprecated wallets tied to a 2025 hack. - **Why it matters:** The dispute highlights operational risks in legacy exchange address deprecation and automated deposit sweeping procedures. - **Who is affected:** CoinDCX customers who sent assets to deprecated deposit addresses, along with platform liquidity providers. - **What's next:** No next step announced. - **Primary source:** [CoinDCX denies hack, blames broken clean up job for $16 million outflow](https://www.coindesk.com/markets/2026/10/23/india-s-largest-exchange-denies-hack-after-blockchain-sleuths-pointed-to-usd16-million-in-suspicious-outflows) — coindesk.com ## Key points - CoinDCX denied an active system compromise after analysts flagged approximately $16 million in USDT and TRX outflows. - The exchange attributed the movements to old deposit addresses previously breached during a $44 million hack in July 2025. - Investigator ZachXBT reported at least one flagged address continued funneling deposits to CoinDCX's hot wallet through May 2026. ## Editorial remark - **Context:** CoinDCX suffered a $44 million security incident in July 2025. Although the platform instructed users to discontinue deposits to breached addresses, legacy endpoints reportedly continued to process incoming transactions for months. - **Impact:** CoinDCX absorbed the operational losses resulting from the sweeping malfunction and credited impacted users. General trading operations remain unaffected, though the event renews scrutiny around the exchange's wallet hygiene. - **Watch:** Market participants are monitoring whether independent forensic auditors or CoinDCX release technical post-mortems reconciling the continuous interaction between the flagged liquidity address and active hot wallets. 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](https://basisdesk.news/news/coindcx-disputed-analysts-16-million-wallet-transfer) 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]. ## Sources 1. [CoinDCX denies hack, blames broken clean up job for $16 million outflow](https://www.coindesk.com/markets/2026/10/23/india-s-largest-exchange-denies-hack-after-blockchain-sleuths-pointed-to-usd16-million-in-suspicious-outflows) — coindesk.com, 2026-10-23 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai