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

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.

Further update on the TQKJQ wallet On-Chain activity.

Following the July 2025 security incident, we advised users not to deposit crypto to the compromised wallet addresses. These addresses were generated earlier in 2025, were compromised during the incident, and have since been deprecated.

It is strongly recommended for users not to deposit funds on deprecated addresses, and always verify updated deposit addresses from the CoinDCX App or website. Please note that depositing funds to deprecated addresses is highly risky. Exchanges do not typically take liability for such deposits made.

Despite our notifications in the past, some users continued to deposit funds to deprecated deposit addresses instead of the latest ones. Our operational process is designed for regular sweeping of any such deposits made so the funds can be properly accounted for and secured. For a particular period, this sweeping process failed, which got identified today morning.

This failure led to some operational losses, which were absorbed by CoinDCX. Importantly, all affected crypto deposit wallets for users on CoinDCX were duly credited even though they were made to the deprecated addresses.

Users’ funds remain completely safe. Customer assets continue to be held in segregated cold wallets. Current CoinDCX central and user addresses have not been impacted, and no CoinDCX funds from active wallets have been compromised.

The CoinDCX platform and all trading activities continue to function as usual.

Please rely only on official CoinDCX channels for updates and avoid spreading unverified information.

— CoinDCX (@CoinDCX) October 22, 2026

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.

Thanks for highlighting but this is incorrect and CoinDCX wallets are not breached. Pls don’t spread rumours.

The addresses tagged by Arkham used to belong to CoinDCX before the last year hack ie July 2025. These addresses were generated in Jan 2025 and were compromised in the previous hack in July 2025. The hackers seem to be re-using the old wallet addresses and this sounds like a false alarm. We have checked all the present CoinDCX central and user addresses. None of them have sent money to these old addresses.

All the CoinDCX addresses are public and can be seen on our POR link. None of these have sent funds to the above addresses in question and none of the CoinDCX funds got compromised.

Will keep you posted if any new info comes to us as the team is investigating it further. More details to follow from the official CoinDCX handles soon.

— Sumit Gupta (@smtgpt) October 22, 2026

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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