CoinDCX Denies New $16M Breach, Calls Old Wallet Activity Unrelated

• CoinDCX denies new $16M crypto hack allegations, saying the flagged wallets were compromised in July 2025 and have not been used by the exchange since.
• Blockchain investigators flagged approximately 15.99 million USDT and 5,783.81 TRX in transfers on October 21.
• ZachXBT questioned CoinDCX’s explanation, alleging that a previously compromised address remained active for months after the breach.

Major Indian cryptocurrency exchange CoinDCX has pushed back against claims of a fresh security compromise after on-chain researchers highlighted roughly $16 million worth of USDT and TRX movements connected to addresses historically tied to the exchange.

The October 21 transactions have sparked renewed scrutiny regarding CoinDCX’s July 2025 security breach and the current status of those compromised wallets. In an official statement published on X, CoinDCX reassured customers that “users’ funds are safe” and dismissed the chatter surrounding the wallet activity as “misleading.”

The digital asset platform clarified that the addresses in question were originally established in January 2025 and subsequently breached during the July 2025 event. According to CoinDCX, these specific wallets have remained inactive on the platform ever since.

“The activity now being reported relates to these old addresses and does not have any connection with CoinDCX,” the company stated, emphasizing that normal trading and investing operations remain entirely unaffected.

CoinDCX co-founder Sumit Gupta echoed these denials, noting that while Arkham-flagged addresses previously belonged to the exchange, they were compromised during the 2025 incident. He proposed that external malicious actors might be recycling those older addresses, thereby generating a false alarm.

Gupta confirmed that internal reviews of active corporate and user wallets revealed zero transfers to the legacy addresses. He reiterated that no platform funds are compromised and that ongoing investigations by the team are underway.

Old Wallet Activity Raises Questions

The rebuttal comes in response to findings from Salus-affiliated blockchain security researcher Darcy, who flagged transfers of about 15.99 million USDT and 5,783.81 TRX around 23:35 UTC on October 21. These movements initially stoked worries about potential illicit activity tied to CoinDCX-associated wallets.

Shortly after, prominent investigator ZachXBT cast doubt on CoinDCX’s characterization of the earlier incident. He claimed that an address labeled TQKJQ continued to accept deposits for roughly 10 months following the July 2025 breach, with transaction records appearing as late as April and May 2026.

Furthermore, ZachXBT asserted that this specific address shares links with active public hot wallets operated by CoinDCX, challenging the company’s claim that the compromised infrastructure had been completely abandoned.

Even so, observing on-chain transactions alone does not prove that CoinDCX experienced a brand-new breach or that customer assets are missing. The exchange maintains that the involved addresses are obsolete and completely detached from current activities.

This latest disagreement traces back to an initial security event on July 19, 2025, when an internal operational account designated for liquidity provisions on an external partner exchange was breached. In its post-incident disclosures, CoinDCX assured users that customer balances were untouched and that company treasury reserves would absorb the financial impact.

Ultimately, the current friction hinges on whether recent investigator findings truly conflict with CoinDCX’s explanations. While the exchange insists customer assets remain completely protected, the contradictory claims have not reached an independent resolution, and current evidence falls short of confirming any new breach.

Frequently Asked Questions

Did CoinDCX suffer a new security breach?

No. CoinDCX has strongly denied reports of a fresh hack, explaining that the transactions flagged by researchers involve older wallets that were compromised in July 2025 and subsequently abandoned by the exchange.

What was the value of the transactions flagged by investigators?

Blockchain sleuths flagged transfers involving approximately 15.99 million USDT and 5,783.81 TRX on October 21.

Are user funds safe on CoinDCX?

Yes. CoinDCX leadership and its official statements confirm that all user funds remain secure, trading is functioning normally, and no current company assets have been compromised.

What did independent investigators like ZachXBT point out?

ZachXBT questioned the exchange’s narrative by alleging that a previously compromised address (TQKJQ) continued to accept deposits for months after the July 2025 incident and maintained ties to active CoinDCX hot wallets.