CoinDCX, one of India’s largest cryptocurrency exchanges, has confirmed a major cyber attack that led to the theft of nearly Rs. 368 crore (approximately $44 million). The incident occurred early Saturday and targeted one of the company's internal accounts used for liquidity purposes. 

Despite the scale of the theft, the company has assured users that their assets remain entirely secure and that no customer wallets were compromised.

Were User Assets Affected? 

According to CoinDCX, the compromised account was not linked to any user funds; it was used solely for backend liquidity processes on a partner exchange. 

"This incident did not affect any customer assets. The compromised account was internal and isolated," stated Sumit Gupta, CEO and co-founder of CoinDCX. 

Gupta revealed that the hack resulted from a 'sophisticated server compromise.' The company has pledged to cover the entire financial loss using its treasury reserves, which remain strong.

“Our treasury is adequately capitalized. We’re absorbing the entire loss internally; users won't be affected financially,” Gupta said in a statement on X (formerly Twitter). 

What Action Was Taken Immediately? 

When CoinDCX detected the security breach, it temporarily shut down its Web3 trading service to conduct internal checks and enhance security measures. 

The company clarified that its main cryptocurrency exchange, where standard INR transactions and crypto trades occur, was not affected and continued to operate normally. The Web3 services have since been restored after the firm confirmed that its systems were secure.

“Our teams moved quickly to quarantine the issue, probe the breach, and resume safe operations,” said a spokesperson. 

Also Read: Cybersecurity in the Age of IoT: Threats and Opportunities

CoinDCX to Introduce Bug Bounty Program 

To enhance cybersecurity, CoinDCX will soon launch a bug bounty program. This initiative will reward ethical hackers who identify and report vulnerabilities in the platform's infrastructure. Additionally, the organization is working with global cybersecurity experts to track down attackers, address system vulnerabilities, and recover stolen funds.

“This is not a problem that is internal to the country. It’s a reflection on the sophistication of the threats that the crypto platforms are facing globally,” Gupta said. 

Wake-Up Call for India’s Crypto Industry 

The hack occurred at a critical moment for India's cryptocurrency industry, as the government is set to release its first comprehensive policy document. This document aims to establish clearer guidelines concerning security, compliance, and user protection.

This incident follows the high-profile breach of WazirX last year, in which the Indian exchange lost over $230 million due to a compromised private key. In simpler terms, these repeated breaches serve as a warning for the digital asset industry to enhance its cybersecurity standards.

Company Insists on Calmness, Vows to Be Transparent   

Gupta has urged users to remain calm and avoid panic selling. “Don’t sell in fear. Let the markets stabilize. Panic selling usually results in bad outcomes,” he said.  

CoinDCX has assured users that it would release complete, verified information about the breach after the investigation is over. Meanwhile, its priority is on user trust and platform stability.   

“We are very serious about it. Our top priority is to provide security, transparency, and a reliable ecosystem for crypto investors in India," the company added.