CoinDCX absorbs $16M loss from retired-wallet process failure
CoinDCX, India's largest crypto exchange, confirmed it absorbed a $15.99 million loss in USDT after an internal "sweeping" process failed to move customer deposits out of a retired wallet — address TQKJQ — that was compromised in the July 2025 hack (which cost about $44 million). The exchange had initially dismissed blockchain sleuths' and ZachXBT's reports of suspicious outflows as a false alarm, with CEO Sumit Gupta calling them that on X; ZachXBT alleged the address was still being used by a liquidity provider as recently as April–May 2026.
- Some users kept depositing into the deprecated addresses after the 2025 breach; CoinDCX credited their portfolios when funds arrived, but the sweeping process failed for a period, letting deposits accumulate in the compromised address.
- The company says user balances, active wallets and cold storage were unaffected, while conceding it "could have been more proactive" in disclosing the incident.
- Tether earlier froze $2.2 million in USDT linked to the outflow as the dispute unfolded.
Sources
- India's largest crypto exchange absorbs $16 million loss from internal process failure tied to retired walletcoindesk.com ↗
- UPDATE: @Tether freezes $2.2M in $USDT linked to the $16M @CoinDCX outflow as onchain investigator @ZachXBT disputes the exchange’s account, alleging compromised deposit addresses were still active as recently as May 2026 and urging users to withdraw funds. https://t.co/Y911u9eRrKx.com ↗
- India's largest exchange denies hack after sleuths pointed to $16 million in suspicious outflowscoindesk.com ↗
CoinDesk
