CoinDCX vows to protect users as $16M in questioned transactions spark investigation
The Indian exchange attributed the transactions to compromised wallets from a July 2025 incident, though blockchain analysts maintain the addresses continued operating within its infrastructure.
India-based crypto trading platform CoinDCX has refuted allegations of a fresh security compromise following reports from analysts who identified questionable fund movements, though blockchain researchers have raised doubts about the exchange's assertion that it discontinued using the wallets following a July 2025 security incident.
The transactions under investigation originated from legacy wallet addresses established in January 2025, which the exchange says were "compromised in July 2025" and subsequently abandoned by the platform, according to CoinDCX's Thursday statement posted on X.
However, blockchain analyst ZachXBT disputed this explanation, asserting that a deposit address associated with CoinDCX remained active through a liquidity provider for a full 10-month period following the July 2025 breach. According to his analysis, the address in question continuously processed user deposit transfers to CoinDCX's currently operational public hot wallet while also receiving funds designated for covering transaction fees.
Yes, aware of that. We're investigating it further, and will share an update soon. We assure that no user funds will be at loss.
Sumit Gupta, CEO of CoinDCX
Earlier on Thursday, Darcy, who serves as co-founder of the asset recovery service FlashRescue, brought attention to approximately $16 million in fund transfers originating from wallet addresses tagged as being under CoinDCX's control.
Additionally, Darcy asserted that a pair of addresses included in CoinDCX's most recent proof of reserves documentation had executed fund transfers to the questioned Tron address.
The exchange suffered a $44 million drainage incident in July of last year. At that time, CoinDCX stated that customer wallet holdings were maintained separately from the compromised account and pledged to compensate for the losses using funds from its own treasury reserves.
CoinDCX had not provided a response to Cointelegraph's request for comment as of the time of publication.