Oct. 26 (CandyPulse) — CoinDCX, one of India's biggest crypto exchanges, has confirmed a loss of about $16 million (around 15.99 million USDT) linked to old wallets it no longer used. The exchange says it will absorb the loss itself and that customer balances are not affected.
Key takeaways
| Question | Answer |
|---|---|
| How much was lost? | ~$16M (about 15.99M USDT) |
| What went wrong? | A sweeping service that moves deposits from old addresses failed for a period, so funds piled up at retired wallets |
| Were the wallets secure? | CoinDCX called them old, deprecated infrastructure with unknown vulnerabilities |
| Customer funds? | Unaffected, the exchange says; accounts kept being credited |
| Recovered so far | ~$2.21M frozen by Tether |
CoinDCX describes an internal process failure. Some outlets and on-chain analysts describe it as an attack that drained the old deposit wallets, which trace back to a 2025 hack. On-chain investigator ZachXBT said one flagged address was still being used by a liquidity provider as recently as April and May 2026. The exchange's early denial, later reversed, has also drawn criticism.
If you use CoinDCX, the exchange says your balance is safe and it's covering the shortfall. Still, it's a reminder to only send deposits to the address the app shows you right now, and never to old addresses saved from months ago.
Related: India's crypto boom and the local exchange puzzle, Bitget's security incident and Australia's proposed exchange safeguards.
Watch for a full post-incident report from CoinDCX and any further recovery of funds. More security news on crypto news today.
Disclaimer: This article is for information only and is not financial advice. Crypto assets are volatile and can lose value. Always do your own research before making any investment decision.
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