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Indian cryptocurrency exchange CoinDCX suffered a significant cybersecurity breach, resulting in a $44 million loss due to a sophisticated server hack.
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The attack targeted an internal operational account used for liquidity provisions, but crucially, no user funds were compromised, as confirmed by CoinDCX leadership.
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Onchain analyst ZachXBT highlighted that the stolen funds were partially laundered via Tornado Cash and bridged from Solana to Ethereum, showcasing the evolving tactics of cybercriminals.
CoinDCX faces a $44 million hack through a server breach, safeguarding user funds while highlighting ongoing crypto exchange cybersecurity challenges.
CoinDCX $44 Million Hack Exposes Vulnerabilities in Exchange Operational Security
The recent breach at CoinDCX underscores the persistent cybersecurity risks within the cryptocurrency exchange ecosystem. The attack exploited a sophisticated server vulnerability to access an internal account dedicated to liquidity provisions with another exchange. Unlike typical hacks targeting user wallets, this incident was confined to operational infrastructure, preventing direct user losses.
CoinDCX CEO and co-founder Sumit Gupta promptly addressed the situation, emphasizing that the breach was swiftly contained by isolating the compromised account. This operational segregation between customer wallets and internal accounts played a critical role in limiting the financial impact. The exchange is absorbing the loss from its treasury reserves, reflecting a commitment to protecting its user base and maintaining trust.
Advanced Laundering Techniques Highlighted by Onchain Analysis
Blockchain forensic expert ZachXBT provided valuable insights into the post-hack movement of funds. The attacker utilized Tornado Cash, a privacy-focused mixer, to obfuscate the trail of stolen assets. Subsequently, a portion of the funds was bridged from the Solana blockchain to Ethereum, demonstrating the increasing complexity of laundering methods employed by threat actors.
This pattern of cross-chain fund movement complicates tracking efforts and underscores the need for enhanced monitoring tools and inter-chain collaboration among security teams. CoinDCX’s transparency in sharing these details contributes to broader industry awareness and preparedness.