Rahul Agarwal, a software engineer at CoinDCX, was arrested in Bengaluru for involvement in a $44 million hack, exploiting internal credentials in a July 2025 attack.
The incident underscores significant security concerns, prompting calls for improved measures, as the hack resulted in substantial financial losses but contained user impact.
Engineer Arrested in CoinDCX’s $44 Million Breach
Rahul Agarwal, a software engineer at CoinDCX, is at the center of allegations of credential theft, with insider access utilized for the hack. CoinDCX’s CEO emphasized a sophisticated attack, targeting employee vulnerabilities.
$44 Million Hack’s Limited Client Impact
The theft saw $44 million siphoned off, largely in stablecoins like USDT. The stolen funds were obscured using cryptocurrency mixers. Security reviews and cooperation with police are ongoing to prevent future breaches of this nature.
Lessons from Past Crypto Exchange Breaches
Similar breaches, such as the 2018 Coincheck hack, illustrate the frequent targeting of privileged insiders in crypto exchange attacks. “Based on our internal preliminary findings, this appears to be a sophisticated social engineering attack. Employees are often targeted in such attacks,” stated Sumit Gupta, CEO, CoinDCX. Credential theft remains a prevalent issue in the industry.
Experts suggest that improved employee training on phishing prevention could reduce risks. The incident highlights the need for comprehensive security measures to protect against such sophisticated attacks in the crypto sector.
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