Sat Jul 26 02:30:00 UTC 2025: Here’s a summary of the text and a rewritten news article:
**Summary:**
Indian cryptocurrency exchange CoinDCX reported a security breach on July 19, 2025, affecting one of its operational accounts used for liquidity provisioning. While the company claims customer funds are safe and segregated in cold wallets, the incident exposed approximately $44 million. CoinDCX reported the incident to CERT-In and is working with forensic firms to trace the attacker and recover assets. Customers experienced withdrawal delays, sparking concerns, but CoinDCX attributes this to high withdrawal volumes during non-banking hours. The company faced criticism for a 17-hour delay in disclosing the breach. This event comes after a similar, larger-scale attack on WazirX in 2024. Experts advise users to consider self-custody options for greater control over their crypto assets and to implement robust security measures.
**News Article:**
**CoinDCX Confirms $44 Million Breach, Sparks Customer Concerns**
*NEW DELHI, July 26, 2025* – Indian cryptocurrency exchange CoinDCX disclosed a security breach impacting one of its internal operational accounts on July 19th, raising concerns among investors despite assurances that customer funds remain secure.
According to the exchange, the compromised account, used for liquidity provisioning on a partner exchange, resulted in a financial exposure of approximately $44 million. CoinDCX asserts that the breach was contained, affecting only the segregated account and that the loss will be absorbed by the company’s reserves.
“Our first priority is always to act, not just to speak. Before making a public statement, we had to ensure the threat was fully contained, our platform was secure, and all customer funds were safe. Communicating with incomplete or unverified information would have been irresponsible and could have caused unnecessary panic,” said co-founder Sumit Gupta.
However, some customers reported delays in processing withdrawal requests, leading to anxieties about potential fund freezes. CoinDCX attributed these delays to increased withdrawal volumes during off-peak hours, denying any freeze on accounts.
The company faced criticism for a 17-hour delay in informing customers about the breach. CoinDCX defended its delay, stating the need to gather all necessary information before making a public announcement.
This incident echoes the 2024 WazirX hack, where over $230 million in customer assets were affected. Unlike WazirX, CoinDCX insists that customer funds held in cold wallets are safe and that normal operations, including trading and withdrawals, continue. The company highlights that its annual revenue exceeds ₹1,100 crores.
Cybersecurity experts advise crypto users to consider self-custody options using hardware wallets for greater control over their assets. They also recommend employing multi-factor authentication and strong passwords to protect accounts.
The incident underscores the inherent risks in cryptocurrency trading, particularly in a largely unregulated environment like India. Even with FIU-registered exchanges, investors may have limited recourse in the event of a security breach. CoinDCX has reported the incident to CERT-In and is collaborating with blockchain forensic firms to investigate the attack and recover stolen assets.
First Piper 