CryptoSlate
CoinDCX confirmed a loss of roughly $16 million in USDT three days after CEO Sumit Gupta called reports of a new wallet breach a false alarm. The exchange said deposits continued reaching wallets deprecated after its July 2025 breach because an automated sweeping service failed. CoinDCX says it absorbed the loss and customer balances were unaffected.
Why it matters
The sequence differs from the fraud findings later established at FTX and Celsius, but it carries the same information risk: public reassurance arrived before the full operational picture was disclosed. CoinDCX says it identified unusual activity on Oct. 21 and learned of irregular fund movements the following day, while the full loss figure came on Oct. 25.
Blockchain analytics firm Bitquery counted 40 Tron wallets tied to the transfers. It traced $15.8 million to one deposit address, while Tether reportedly froze $2.2 million. About $9.6 million moved to addresses associated with Binance, OKX and Gate. One address had received 88 deposits since March 2026.
Market impact
CoinDCX says trading and withdrawals continued normally, and that all customer liabilities remain covered. That claim still needs to be tested against an independent reconciliation, the timing of the sweeping-service failure and evidence showing how the attacker gained control of the legacy wallet flow.
For customers and counterparties, nominal coverage is not the same as immediate liquidity. A full incident timeline, audited balance sheet and independent review of deprecated wallets would help distinguish a contained operational failure from a broader control weakness. If the account changes again or customer losses emerge, confidence in the platform would face another setback.
Frequently asked questions
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How did CoinDCX’s $16M USDT loss occur?
Deposits continued reaching wallets deprecated after the July 2025 breach because an automated sweeping service failed, leaving accumulated funds exposed.
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Did CoinDCX say customer balances were affected?
No. CoinDCX said it absorbed the loss and that customer balances, trading and withdrawals were unaffected.
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What did Bitquery trace in the CoinDCX incident?
Bitquery counted 40 Tron wallets tied to the transfers, traced $15.8 million to one deposit address and identified about $9.6 million moving to addresses associated with Binance, OKX and Gate.
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What evidence has CoinDCX not yet published?
The exchange has not published an audited reconciliation or a full timeline showing when the sweeping service failed, how long funds were exposed and how control was lost.
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Why are FTX and Celsius mentioned alongside CoinDCX?
The comparison concerns the risk of public assurances arriving before the full facts are established. CoinDCX’s loss is described as an operational failure, with fraud not established.
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