The Indian crypto exchange, CoinDCX, recently faced a major cyberattack that led to the theft of nearly $44 million (Rs 380 crore approx) from its internal wallets. The breach was detected on July 19 when hackers transferred the stolen funds to multiple external accounts. After the incident, authorities arrested a Bengaluru-based employee of the company for theft.
According to media reports, Rahul Agarwal, a 30-year-old employee of CoinDCX from Bengaluru, has been arrested in connection with the crypto theft. Agarwal, who has worked at the company for around three years, is believed to have unknowingly facilitated the breach.
A police complaint filed on July 22 by Hardeep Singh, Vice President of Public Policy and Government Affairs at Neblio Technologies, the Bengaluru-based parent company of CoinDCX, outlined the details of the hack. Singh stated that the hackers gained access to the company’s wallets and transferred cryptocurrency worth $44 million in the early hours of July 19.
The Indian Express reported that the hackers installed malware on Agarwal’s company laptop after luring him with a part-time job offer. Agarwal, originally from Jharkhand, was assigned online tasks such as writing reviews. He first used his personal laptop, but later switched to his office device, where the malware was installed by hackers without his knowledge. This access enabled hackers to siphon off funds from CoinDCX’s wallets.
Further reports indicate that Agarwal had received approximately Rs 15 lakh, which he claimed was income from part‑time work. The report also stated he had received the funds from unidentified external parties. Following the breach, the Whitefield CEN police registered a case under various sections of the Information Technology Act and the Indian Penal Code, including those related to computer offences, identity theft, cheating, theft, and criminal breach of trust.
The case is still investigating by authorities in an effort to trace those involved and retrieve stolen funds. Given the complexities of tracking transactions on blockchain, such efforts often face significant challenges.
Responding to the development, CoinDCX spokesperson said, "As the matter is currently under active investigation by the relevant authorities, we are unable to share further details at this point to ensure the integrity of the process is not compromised. We urge everyone to avoid speculation or the circulation of unverified information, as it may impede the ongoing investigation."
