India’s CoinDCX Confirms $16 Million Loss Days After CEO Called It a ‘False Alarm’

The total losses for CoinDCX are approaching $60 million, as the Mumbai-based exchange has confirmed a $16 million loss, which it is taking on itself, following a recent incident.

This fresh loss stems from 15.99 million USDT being removed from wallets that the exchange had taken offline after a substantial $44 million hack last year.

The revelation reverses the earlier statement made by CEO Sumit Gupta, who had previously dismissed reports of a breach as a "false alarm."

In a blog post, CoinDCX disclosed that 15.99 million USDT was drained, and furthermore, the company stated it is absorbing this financial hit, while assuring that customer funds remain secure.

The movement of the funds occurred on the Tron network on Oct. 21, and the company attributed the event to a malfunction within an internal procedure designed to move customer deposits out of wallets that were retired subsequent to the much larger hack in 2025.

This disclosure concludes a difficult few days for the exchange.

When blockchain researchers and the Arkham tracker initially flagged approximately $16 million in suspicious outflows, CEO Sumit Gupta responded on X, asserting that CoinDCX’s wallets were "not breached" and that the addresses flagged had been compromised back in July 2025, causing the activity to appear like "a false alarm."

On-chain investigator ZachXBT contradicted this assertion, pointing out that the specific wallet in question had continued to sweep user deposits into CoinDCX’s current hot wallet as recently as April and May, and he advised customers to withdraw their holdings, stating, "Withdraw all funds from CoinDCX if you value your assets. Its co-founders are clowns running a circus. They publicly and privately denied a theft of its assets occurred meaning they straight up lied or are negligently incompetent."

ZachXBT subsequently posted on October 22, 2026, "Later they disclosed the $16M theft and… pic.twitter.com/uEmtogPonq".

This new loss adds to a challenging period for one of India’s largest exchanges. CoinDCX experienced a hack amounting to roughly $44 million in July 2025, which the exchange attributed to a server breach, leading to a search for the stolen assets and eventually the apprehension of an employee related to the incident.

Combined, these two separate events bring the exchange's total losses to nearly $60 million.

The retired wallets central to this latest loss were themselves a remnant of the earlier security breach; these were addresses the exchange had ceased utilizing but which continued to receive leftover deposits. The failure of the automated transfer mechanism to clear these funds left them vulnerable.

CoinDCX has navigated other periods of instability this year, having faced allegations of fraud and impersonation scams which triggered a police investigation, while its founder refuted reports suggesting acquisition discussions with Coinbase after the 2025 hack.

Separately, Coinbase is making moves to expand its presence across South Asia and the Middle East.

The exchange communicated that it will provide further specifics as its internal review proceeds, reiterating that user balances are unaffected.