CoinDCX absorbs $16 million loss from internal process failure

India’s largest cryptocurrency exchange, CoinDCX, has absorbed a $16 million loss stemming from an internal process failure that left customer deposits in a retired wallet.

The Mumbai-based exchange confirmed the loss on October 26, 2026, after blockchain investigators flagged suspicious outflows last week. The funds were sent to addresses associated with a wallet that was deprecated following a 2025 security breach.

CoinDCX stated that a service designed to automatically move customer deposits from the retired wallet failed, allowing users to continue sending funds to the compromised addresses. The exchange initially dismissed reports of the outflows as a false alarm before acknowledging the incident.

The company emphasized that customer balances, active wallets, and trading systems were unaffected and that it would cover the full $15.99 million loss. It also conceded that it could have disclosed the situation to its user base more promptly.