- The exchange said it absorbed a 15.99 million USDT loss linked to retired wallet infrastructure.
- Failed sweeping allowed deposits to accumulate in previously compromised addresses.
- The disclosure followed initial denials; the company says customer balances remain unaffected.
CoinDCX has confirmed a 15.99 million USDT loss, roughly $16 million, involving wallet infrastructure retired after its July 2025 breach. The exchange said it absorbed the loss, leaving customer balances unaffected. Its October 25 disclosure followed earlier denials from CEO Sumit Gupta, who initially described reports of suspicious outflows as a possible false alarm.
CoinDCX explains how deposits accumulated in retired wallets
According to the official update, some customers continued sending deposits to old addresses despite instructions to use replacements. The company credited their accounts immediately when those deposits arrived.
A separate automated service was supposed to transfer the assets into its primary secure wallet. That process, known as sweeping, failed for an unspecified period, allowing funds to accumulate at an exposed address.
CoinDCX linked the loss to this failure and vulnerabilities in its retired infrastructure. However, the statement did not identify those responsible or explain precisely how they moved the funds.
The distinction matters: crediting a customer account records an obligation, while sweeping moves the assets backing that balance. Completing the first step did not ensure the second had occurred.
CoinDCX disclosure follows denials challenged by ZachXBT
Gupta initially rejected breach reports, saying the flagged addresses had been compromised during the earlier incident. The exchange also maintained that it had stopped using those addresses.
ZachXBT challenged that account, citing activity involving a liquidity provider and transfers into the current hot wallet. He pointed to deposit sweeps during April and May 2026, questioning how the addresses could be considered inactive.
The company subsequently acknowledged operational losses before publishing the amount. Its latest statement conceded that communication could have been more proactive while investigators reviewed the old systems.
CoinDCX said trading, deposits and withdrawals continued without interruption. It also said customer assets remained protected in segregated cold wallets, which keep custody keys offline.
The exchange plans stronger monitoring of residual infrastructure and renewed reminders about updating deposit addresses. It advised customers to verify the current address in its app or website before every deposit.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
