Indian Crypto Exchange CoinDCX Loses ₹380 Crore After Major Cyberattack
In a shocking turn of events, Indian crypto exchange CoinDCX has been hit by a major cyberattack, resulting in the theft of approximately $44 million (roughly ₹380 crore) from one of the company’s internal accounts. The incident has sent shockwaves through the crypto community, leaving investors and users wondering what could have caused such a massive breach.
According to reports, the hack occurred on December 24, 2022, and was only discovered on December 26. CoinDCX, a Mumbai-based firm, has since taken swift action to secure its assets and contain the damage. In a statement, the company’s co-founder, Neeraj Khandelwal, assured that the CoinDCX Treasury will be bearing the losses, stating that their primary objective has been to secure assets.
The affected account, as per reports, was an internal account used for managing the company’s assets. The hackers gained unauthorized access to the account, transferring the stolen funds to an unknown wallet. CoinDCX has since frozen the affected account and is working closely with law enforcement agencies to track down the perpetrators.
This is not the first time CoinDCX has faced a major security breach. In 2020, the exchange suffered a similar incident, resulting in the loss of around ₹7 crore. However, this recent attack is significantly larger in scale, highlighting the growing threat of cyberattacks in the crypto space.
The crypto community has been quick to respond to the news, with many taking to social media to express their concerns and support for CoinDCX. India’s crypto regulatory landscape has been shrouded in uncertainty, with the government still grappling with the issue of cryptocurrencies. This incident serves as a stark reminder of the need for robust security measures and regulations to protect investors and users.
The incident has also raised questions about the security protocols in place at CoinDCX. While the company has assured that they are taking all necessary steps to secure their assets, the fact remains that a breach of this magnitude occurred, leaving many to wonder how it happened.
CoinDCX has a strong reputation in the Indian crypto market, with over 1 million registered users and a trading volume of over ₹10,000 crore. The exchange offers a range of services, including spot trading, margin trading, and peer-to-peer (P2P) trading. Despite this, the company has faced criticism in the past over its security measures, with some experts warning of potential vulnerabilities.
In the aftermath of the hack, CoinDCX has assured its users that they will bear no losses and that the company will work to recover the stolen funds. The exchange has also taken steps to enhance its security protocols, including the implementation of additional firewalls and secure communication protocols.
The Indian government has been slow to regulate the crypto space, leaving many exchanges and investors vulnerable to attacks. This incident serves as a wake-up call for the government to take immediate action to establish robust regulations and guidelines for the crypto industry.
As the crypto space continues to grow, it is essential for exchanges like CoinDCX to prioritize security and transparency. The recent hack serves as a stark reminder of the need for robust security measures and regulations to protect investors and users.
In conclusion, the cyberattack on CoinDCX is a significant blow to the Indian crypto exchange and the broader crypto community. While the company has assured that it will bear the losses and work to recover the stolen funds, the incident highlights the growing threat of cyberattacks in the crypto space. As the Indian government grapples with the issue of cryptocurrencies, it is essential that they take immediate action to establish robust regulations and guidelines for the industry.
