Indian crypto exchange CoinDCX has now acknowledged losses of $15.99 million. Previously, attackers transferred funds from old wallets related to a hacking incident in July 2025. This confirmation comes three days after blockchain investigator ZachXBT first reported what was suspected to be a theft.

At the same time, CoinDCX, co-founder with Sumit Gupta, initially denied these claims, stating that they were just rumors.

CoinDCX Confirms Loss of $15.99 Million from Old Wallet

CoinDCX stated in a company announcement that it detected abnormal activity on October 21, 2026, and identified abnormal fund movements the following day. The investigation revealed that funds remained in the old wallet infrastructure that was compromised on July 19, 2025, due to the failure of the automatic collection service.

This service was originally intended to transfer the funds recharged into various user accounts into a secure operational wallet. However, the recharges sent to the old addresses were not transferred into the main wallet; instead, they remained on the blockchain and continued to accumulate there.

According to the report provided, on October 21st, the attackers transferred 15.99 million USDT and 5,784 TRX through 44 transactions. It is stated that CoinDCX that this portion of the loss will be fully borne by the company.

CoinDCX: From Rumors, Denials to Acknowledging Losses

On October 22, an investigator on the blockchain, ZachXBT, stated in a post that approximately 15.99 million USDT and 5,783.81 TRX were stolen from wallets associated with CoinDCX. The CEO, Sumit Gupta, initially dismissed this claim, stating that it was merely a rumor and that no addresses of the exchange were affected.

ZachXBT strongly criticized this response, accusing the co-founder of either lying about the theft incident or of being seriously derelict in duty and incompetent. He also urged users that if they value their assets, they should withdraw their funds from CoinDCX.

CoinDCX subsequently confirmed this loss in a company update, stating that the funds were transferred from its old wallet infrastructure, which was compromised during a security incident on July 19, 2025.

The question now is, since security vulnerabilities have already occurred, why are there still customer funds held in these old wallets?

Why is there still customer funds in the old wallet?

It is reported that after the hacker attack in July 2025 that caused a loss of $44 million, CoinDCX requested users to switch to a new recharge address. However, some users and platforms continued to send funds to the old wallet.

CoinDCX indicates that for funds sent to the old wallet address, the company will still receive and record them in the user's account. According to the original plan, these funds should be transferred to a safer wallet through an independent collection service.

But when this system failed, the funds remained in the old wallets, and hackers were still able to access these wallets.

CoinDCX claims that user funds are still safe

After the announcement was released, the exchange stated that the balances of affected customers had been retrospectively corrected internally, and neither their active wallets, cold storage, nor the trading system were impacted.

CoinDCX also indicates that Tether has frozen approximately $2.21 million in stolen funds.

Credit: Report by CoinPedia; company statements in the text are from CoinDCX announcements, while allegations and comments about theft on the blockchain come from posts on ZachXBT.