Old addresses continued to receive customer deposits
The addresses involved had been compromised on 19 July 2025. They were no longer intended to hold funds, but some customers continued to send deposits to them. CoinDCX still credited those deposits to the customers’ account balances inside the exchange.
The failure occurred after the credit was recorded. CoinDCX described two separate processes. The first process added the incoming amount to the customer’s portfolio as soon as a deposit arrived. The second process was meant to transfer the same funds from the old address to a current secure wallet. That automatic transfer service was not working for these addresses, so funds accumulated at locations that should not have retained a balance.
The accumulated balance was removed
According to CoinDCX, the old addresses collected 15.99 million Tether tokens before the funds were taken. The company linked the activity to 21 October and said the related on-chain movements were identified the following day.
This was not described as a separate corporate treasury wallet. The loss arose because customer deposits reached previously compromised addresses and were not swept into secure storage. CoinDCX said the customers had already received the corresponding balance credit.
CoinDCX says it will cover the loss
In its 25 October statement, CoinDCX said user balances remained fully accounted for and that the company would absorb the financial loss. Those assurances are the company’s position and do not change the need to verify the technical sequence through the available on-chain records.
CoinDCX also said its active wallets and trading systems continued to operate, with no pause in trading, deposits or withdrawals during the preceding 72 hours. That statement separates the old infrastructure involved in the loss from the systems customers were using at the time of the update. Customers should still use the current deposit address displayed in the CoinDCX application before every transfer. An address saved from an older transaction may no longer be valid, even when an exchange previously accepted funds at that address.
This article is for information only and is not investment advice.
admin_wcContributor · World-CryptMore from
