CoinDCX, a leading cryptocurrency exchange in India, unveiled measures to address a ₹368 crore breach impacting an operational account, including India’s largest recovery bounty, on July 21, 2025.
The breach affects liquidity operations but not customer funds. CoinDCX’s immediate response emphasizes its robust treasury and aims to reassure customers and the crypto community.
₹368 Crore Breach Spurs India’s Largest Recovery Bounty
CoinDCX confirmed the unauthorized breach targeting an internal operational account linked to liquidity provisioning, not customer wallets. The company’s immediate actions included comprehensive investigations and launching India’s largest crypto recovery bounty to recuperate the stolen assets.
The breach affects approximately ₹368 crore and involves significant on-chain movements. Sumit Gupta, CoinDCX’s CEO, assured customers of the platform’s continued safety and highlighted the exchange’s quick reaction to tackle the incident.
User Trust Intact Despite ₹368 Crore Breach
CoinDCX’s assurance of covering losses from treasury reserves has maintained user trust, evidenced by ongoing trading activities. Community sentiment remains relatively calm due to the absence of impacts on customer funds or platform operations. Sumit Gupta, Co-founder and CEO, CoinDCX, stated, “This won’t cause any loss to our customers. CoinDCX will be bearing the full amount.”
The breach highlights vulnerabilities in exchange liquidity operations, prompting scrutiny of cybersecurity measures. As regulators remain silent, the event may foster discussions on exchange security protocols and potential future regulatory requirements in India’s emerging crypto landscape.
Lessons from FTX and KuCoin Breaches
This event parallels past centralized exchange breaches, such as the 2022 FTX and 2020 KuCoin incidents, where attackers exploited similar pathways, including the use of multi-chain asset flows and mixers to obscure transactions.
Kanalcoin experts suggest the event may lead exchanges to reassess cybersecurity practices. Future policies could involve stricter liquidity account safeguards, using previous hacks and their aftermath as a basis for reducing vulnerabilities.
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