India’s cryptocurrency sector was shaken this week after CoinDCX, one of the country’s most prominent digital asset exchanges, suffered a major security breach. The incident, described as a sophisticated server-side exploit, led to the theft of approximately ₹378 crore from a hot wallet used for liquidity provisioning on a partner platform. While such attacks raise long-standing concerns around digital asset security, CoinDCX’s swift and transparent response has helped contain panic and reassure its user base.

In a detailed statement, CoinDCX CEO Sumit Gupta confirmed the breach but emphasized that no customer funds were affected. “All user assets are stored in cold wallets with multi-layer security layers. The loss will be fully covered by the company’s treasury,” he said, underscoring the platform’s commitment to investor safety. Trading, deposits, and INR withdrawals remained operational throughout, though the Web3 trading feature was temporarily paused.

The breach was first detected by blockchain monitoring systems and promptly flagged by independent cybersecurity researchers. This triggered immediate internal audits, system isolation, and engagement with global cybersecurity partners. CoinDCX has also filed a report with CERT-In, India’s national cybersecurity agency, and is now collaborating on a full forensic investigation.

To bolster future resilience, CoinDCX announced a comprehensive security overhaul, including a bug bounty program to identify vulnerabilities proactively. The platform is also reinforcing its infrastructure with additional encryption, behavioral analytics, and tighter access controls.

This attack comes less than a year after the WazirX breach, which saw a much larger $235 million lost to hackers, sparking regulatory criticism and consumer backlash. Unlike WazirX, however, CoinDCX’s proactive stance—accepting financial responsibility and communicating openly—has earned cautious praise from industry stakeholders.

The incident is a stark reminder of the vulnerabilities facing even the most established crypto exchanges in India. As adoption grows and trading volumes rise, platforms will need to prioritize security, transparency, and regulation-readiness. For now, CoinDCX has managed to weather the storm—but the breach may very well serve as a turning point in how the Indian crypto ecosystem approaches risk and resilience.