In a major security incident, CoinDCX, one of India’s cryptocurrency exchanges, has confirmed a hacking attack that led to a loss of around $44 million (nearly Rs 368 crore). The hack took place early on Saturday and targeted one of the company’s internal operational accounts. However, the Mumbai-based crypto platform has assured users that their personal funds are completely safe. In a statement, CoinDCX clarified that the compromised account was only used for liquidity operations on a partner exchange and did not store any customer assets.
Sumit Gupta, Co-founder of CoinDCX, explained on social media that this particular account was hit due to a “sophisticated server breach.” He added that the losses will be covered entirely by the company’s treasury reserves, which are “sufficiently healthy” to absorb the damage. Soon after detecting the attack, CoinDCX temporarily paused its Web3 trading platform as a precaution. However, it is now live again. Regular trading and INR withdrawals on the main crypto exchange were never stopped, and users can continue to use the platform without any issues.
The breach comes at a time when crypto security is under the spotlight in India. The government is expected to release its first crypto policy paper soon, which could bring clearer regulations to the sector. CoinDCX says it is taking this incident very seriously and will continue to focus on building a safe and trustworthy crypto ecosystem in India. This reminds people of the WazirX breach in which several Indian users lost their funds are awaiting justice alleging inaction by the authorities.
What Is WazirX Case?
In July 2024, WazirX, one of India’s largest cryptocurrency exchanges, suffered a cyberattack in which hackers stole approximately Rs 2,000 crore worth of digital assets, said media reports. Following the attack, WazirX offered users partial recovery of assets (between 55%–85%), which many Indian users claimed was arbitrary and lacked transparency, said media reports. Affected users in India filed a class-action complaint with the National Consumer Disputes Redressal Commission (NCDRC), arguing that their contract was with WazirX’s Indian entity, Zanmai Labs. The NCDRC dismissed the case, citing lack of jurisdiction and ambiguity over the legal status of cryptocurrencies in India.
According to reports, the Singapore High Court has dismissed in June Zettai’s proposed restructuring plan for WazirX. The court cited concerns about regulatory compliance for the distributing company which was earlier suggested to be Panama based entity Zensui. The compromised wallet was jointly managed with a company called Liminal, and both Liminal and WazirX have since pointed fingers at each other over the vulnerability that was ultimately exploited by North Korean hackers. When the breach occurred last July, WazirX faced backlash for its delayed communication with users and for creating confusion by freezing their funds in the aftermath of the attack.
In January this year, WazirX said it had frozen the first tranche of stolen assets, worth around $3 million. Despite being known primarily as an Indian crypto platform, WazirX took its restructuring efforts to the legal system in Singapore. There, it sought a moratorium to protect itself from legal claims during the reorganization.
The initial creditor vote in favour of the scheme received approval rate of 93.1%. If the amended version gains similar support, Zanmai could begin distributing recovered assets within 10 business days of court approval. The company also announced that, to align with updated legal and operational standards, it has adopted a new structure under which the FIU-registered Zanmai India entity will handle asset distribution—once the court approves and sanctions the proposed Scheme.
Indian Investors Await Justice
The case attracted attention for its cross-border legal implications, with many Indian investors initially questioning why proceedings are being handled in Singapore. Many Indian investors have expressed frustration with the lack of prompt action from domestic authorities. With ongoing legal proceedings and market volatility, many investors remain anxious about recovering their crypto before values fluctuate further. Affected Indian users have been taking to X to vent their anger.
One more Jumla or comment section off kr rakha h. Kaamp kyu rakhe ho#wazirx #india #crypto #pi #btc #eth #CoinDCX #scam pic.twitter.com/8ws3rdj3EC
— ViV Thakur (@vipanthakur126) July 17, 2025
TBH….Indian crypto users just wants their funds BACK
They’re tired of your lies. They know how clearly you’ve exploited them, how many times you’ve hidden the truth
You still haven’t even made the real #WazirX PoR public & it’s been 1 year now !!! pic.twitter.com/w3J10H0sOA
— Ajay Kashyap (@EverythingAjay) July 17, 2025
While other exchanges fully compensated users after a hack, WazirX didn’t pay even 1.
Instead, they keep shifting blame saying others are “too big” or “too small” to compare, while offering excuse after excuse.
No refunds. Just PR and “blah blah blah.”#WazirX #WazirxScam
— Harish Varma (@Harishvarma08) July 19, 2025
The slow and indecisive response from Indian authorities has frustrated many WazirX customers in the country, with several questioning why the fate of their invested crypto is still being determined in a foreign court. Others are growing increasingly anxious to regain access to their assets amid fears of a market downturn, but the legal battle remains unresolved.
