Home CoinDCX Admits Operational Losses After $16M In Crypto Transfers Raise Questions

CoinDCX Admits Operational Losses After $16M In Crypto Transfers Raise Questions

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CoinDCX Admits Operational Losses After $16M In Crypto Transfers Raise Questions
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Indian cryptocurrency exchange CoinDCX has admitted that it suffered operational losses after about $16 million in crypto transfers raised questions about its handling of deposits. On October 22, 2026, the exchange said a system failure had affected the transfer of deposits from old wallets that were compromised in a July 2025 hack.

CoinDCX said some users continued sending crypto to these old addresses despite warnings. The exchange said it had covered the losses, credited all affected users’ accounts and confirmed that its current wallets and customer funds remained safe.

The issue came to light after unusual transactions linked to wallets identified with CoinDCX drew attention. The exchange initially said the addresses had been created in January 2025, compromised in July 2025 and no longer used after the incident.

However, blockchain records showed activity linked to these addresses even after the security breach. Some deposits were reportedly transferred to CoinDCX’s current public hot wallet as recently as April and May 2026. The transactions raised questions about how the exchange handled funds sent to the old addresses.

CoinDCX later explained that its system normally transfers deposits received at such addresses to ensure proper accounting and security. However, this process failed for an unspecified period. The company said it identified the problem on the morning of October 22 and absorbed the resulting operational losses.

In its statement on X, CoinDCX said all affected deposits had been credited to users’ accounts. It also said customer assets continued to be held in separate cold wallets and that no funds from active wallets had been compromised. The exchange added that trading and other platform activities continued as usual.

CoinDCX co-founder and CEO Sumit Gupta had earlier said that the company was investigating the transactions and would share an update. He also assured users that they would not suffer losses.

The latest issue follows a major security breach in July 2025, when about $44 million was stolen from an internal operational account used for providing liquidity on a partner exchange. At that time, CoinDCX said customer wallets were separate from the affected account and that the loss would be covered using its treasury reserves.

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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