CoinDCX, a cryptocurrency exchange active in India, has been subject to a substantial security breach. Hackers stole somewhere around $44 million (about ₹368 crore), early on Saturday, via an attack on an internal account conducting CoinDCX’s operations.

The Mumbai-based company said it promptly reassured users that their funds are entirely safe. The hacked account was only managing liquidity with a partner exchange, according to CoinDCX, and did not hold customer money. This means that users savings and investments on the platform are untouched by this hack.

Co-founder of CoinDCX, Sumit Gupta, shared the details of the incident on social media. Gupta noted the hack was a result of a highly sophisticated attack on the company’s servers. Gupta noted CoinDCX has enough reserves in the treasury to cover the loss, indicating the company would not be held responsible for the impact on users.

In order to allow time to resolve the issue, CoinDCX halted its Web3 trading platform as a precautionary measure. The Web3 trading platform is back online without any interruption, as was and is trading including withdrawal in Indian Rupees continuing without interruption. Users will be able to continue using the exchange as usual without concerns.

Gupta advised investors to stay calm and not to panic-sell their value because if they sell too quickly, they may have to sell at bad prices and may lose even more money. He recommended that users remain patient and confident while they figure things out.

CoinDCX’s security team is investigating the breach with the knowledge and support of global experts in cybersecurity. The security team aims to understand why the attack was successful, determine if the game-servers have vulnerabilities, and to track down the stolen funds. The company is committed to properly upgrading its security so it does not have to deal with this issue in the future.

CoinDCX plans to also build up its defenses by launching a bug bounty program in the upcoming futures. This will allow them to pay ethical hackers to identify and report any vulnerabilities to the platform’s systems. This demonstrates the company’s commitment to create a safe, user-friendly environment.

While users may have been concerned by the hack, CoinDCX has committed to an official report at the conclusion of the investigation. Gupta repeated that this incident represents the growing cybersecurity challenges faced by cryptocurrency platforms not just in India but around the world.

The hack coincides with massive scrutiny on India’s cryptocurrency industry. The Indian government has been preparing to issue its first official policy with respect to cryptocurrencies. Although this policy will not have a huge immediate impact, any policy would be helpful in creating rules that could provide additional certainty to the industry.

Such a policy or regulation could help to standardize security and identify minimum thresholds for security across platforms.

This is also not the first time an Indian crypto exchange platform has been subject to this kind of breach. Last year, another large Indian platform WazirX suffered a breach similar to CoinDCX, which reported over $230 million lost based on the hacked private key.

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CoinDCX is taking this situation very seriously, and they remain committed to developing a safe and trusted crypto ecosystem and experience for users in the Indian market. CoinDCX’s quick response and transparent communication around the incident should help restore trust among users, and continue to alleviate any impact this incident could have on trust and confidence going forward.

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