CoinDCX Absorbs Losses After Deposit Collection Failure

The CoinDCX exchange confirmed it absorbed operational losses resulting from a flaw in its deposit collection system. The issue occurred when users sent crypto assets to wallet addresses that had been deactivated following a security incident in July 2025.

The company stated that the scanning process for these wallets failed. The error was identified on the morning of October 22. The exchange declared that it credited the amounts to the affected customers' wallets to prevent any losses for the users.

The case gained attention following allegations regarding a lack of transparency concerning 15.8 million dollars in deposits. Investigator ZachXBT pointed out that a specific address continued to receive funds for months after its official deactivation. He alleged that the address in question moved resources to the exchange's public hot wallet.

Initially, CoinDCX leadership denied any new security breach. CEO Sumit Gupta stated that the platform's active wallets were not compromised. The company maintained its position that the old addresses had not been used since the July 2025 incident.

CoinDCX did not disclose the total amount of losses absorbed or the exact duration of the collection system failure. Transaction log data shows a successful transfer of 15.8 million USDT from one of the cited addresses. The investigation into the extent of the problem remains ongoing.