CoinDCX Denies Fresh Hack, Reports Operational Losses After $16 Million Wallet Transfers

Crypto exchange CoinDCX has denied claims of a fresh security breach after blockchain investigators flagged nearly $16 million in cryptocurrency transfers involving wallets previously associated with the platform. The development has raised questions about the exchange’s handling of deposits made to old wallet addresses.

CoinDCX Says Old Wallet Addresses Were Compromised In July 2025

CoinDCX co-founder Sumit Gupta denied a fresh security breach, saying the wallets flagged in the reports were old addresses compromised during the July 2025 security incident.

“Thanks for highlighting, but this is incorrect, and CoinDCX wallets are not breached,” Gupta wrote on X, adding that the exchange’s current central and user addresses had not sent funds to the addresses in question and none were compromised.

In a subsequent statement, CoinDCX said the addresses were generated in January 2025, compromised in July 2025 and subsequently deprecated.

“The activity now being reported relates to these old addresses and does not have any connection with CoinDCX,” the exchange said.

CoinDCX Acknowledges Failure In Deposit-Sweeping Process

In a further update on the on-chain activity involving the TQKJQ wallet, CoinDCX said some users continued to deposit cryptocurrency into deprecated addresses despite earlier notifications advising them against doing so.

The exchange said its operational process was designed to regularly sweep such deposits so the funds could be accounted for and secured. However, it acknowledged that the process had failed for a period.

“For a particular period, this sweeping process failed, which was identified on the morning of 22nd October 2026,” CoinDCX said.

The company said the failure resulted in operational losses that it absorbed. It added that affected customer deposit wallets had been credited even when deposits were made to deprecated addresses.

“Users’ funds remain completely safe,” CoinDCX said, adding that customer assets continued to be held in segregated cold wallets and that its current central and user addresses had not been affected. The exchange said no funds from its active wallets had been compromised.

Blockchain Researcher Flags Transfers Of Nearly $16 Million

Blockchain security researcher Darcy Ari flagged transactions involving approximately 15.99 million USDT and 5,783.81 TRX on October 21. According to Ari, CoinDCX’s hot wallet and multiple deposit addresses transferred the cryptocurrency to the TRON address Tag6SZ1HhgVVjUaKY1paQoFBUS2JFrg5bT. The largest single transaction was 15,819,002 USDT, he said.

Ari added that the receiving address subsequently transferred funds to multiple addresses. After several splits, the funds reached deposit addresses associated with Binance, OKX, Gate and other platforms.

The reported transactions raised questions about the wallets’ association with CoinDCX. The exchange, however, said the activity involved old addresses compromised in the July 2025 incident and maintained that its current wallets had not been breached.