On July 19, 2025, blockchain investigator ZachXBT posted a breach alert on Telegram that sent shockwaves across India's crypto landscape. CoinDCX, one of the country's largest exchanges, had suffered a significant security incident.

But instead of a chaotic freeze or vague silence, CoinDCX responded within hours with full transparency, operational continuity, and a powerful signal: "Your funds are 100% safe."

What Happened

According to CoinDCX's public statement, a single internal operational account was compromised via a sophisticated server breach. This wallet, used solely for liquidity provisioning on a partner exchange, was isolated from customer wallets.

Here are the key facts:

  • Total funds compromised: ~$44 million in USDT and SOL.
  • Customer assets impacted: 0.
  • Funds traced to: Two destination wallets:

a. Wallet 1

b. Wallet 2

  • Immediate action taken: Affected operational account isolated, incident reported to CERT-In, and security partners engaged globally.

CoinDCX reassured users that their reserves are strong, 1:1 backed, and all customer funds remain secured in segregated cold wallets. Trading and withdrawals remain fully functional.

The Investigation: What Breadcrumbs Found

Our team at Breadcrumbs investigated the CoinDCX hack by tracing the attacker's movements across blockchains. Here's a quick summary:

Chapter 1: Hack Preparation

The attacker funded their wallet using Tornado Cash to hide where the money came from.

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Chapter 2: Executing the Hack

Roughly $44 million in USDT and SOL was drained from CoinDCX's operational wallet.

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Chapter 3: Bridging the Funds

The stolen assets were converted and bridged from Solana to Ethereum using Jupiter and Wormhole.

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Chapter 4: Fund Consolidation

Most of the funds were collected in a single Ethereum wallet: 0xEF0c5b9E0E9643937D75C229648158584A8CD8D2, which still holds over $43 million.

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View the full investigation report: https://www.breadcrumbs.app/reports/18488?share=0ee33a33-cf23-4876-b81b-2d04a9d5c877

CoinDCX's Response: More Than PR

CoinDCX's reaction wasn't limited to statements. They:

  • Absorbed the entire loss from their own reserves.
  • Maintained all platform operations and withdrawals without disruption.
  • Engaged CERT-In, two global cybersecurity firms, and blockchain forensics experts.
  • Are coordinating with ecosystem partners (including Sygnia, Seal911, Superteam, Wormhole, and deBridge).

Launching India's Largest Crypto Recovery Bounty

In a bold move, CoinDCX launched the Recovery Bounty Program:

  • Bounty Reward: Up to 25% of successfully recovered funds.
  • Pool Size: Potentially up to $11 million.
  • Eligibility: Ethical hackers, white-hat researchers, or anyone providing actionable intelligence leading to recovery or conviction.

Their message is clear: this isn't just about CoinDCX. It's about defending trust in Web3.

"If this can happen to us, it can happen to anyone. But if we act together now, we can set a new standard for response and recovery." — CoinDCX Team

Why This Matters

The CoinDCX breach is more than just a cyberattack. It's a real-world test of:

  • Security resilience
  • Transparency in crisis
  • Community-led recovery

This isn't the first high-value crypto hack but the combination of full transparency, instant containment, and a public bounty campaign shows a path forward for incident response.

Let's keep the pressure on. Share this story. Trace those wallets. And if you have intel, reach out to bountyprogram@coindcx.com.