CoinDCX’s loss reaches 15.99 million USDT after transfers from old deposit addresses fail
Key Facts
CoinDCX said it absorbed a loss of 15.99 million USDT after an automated service for transferring deposits from old addresses to its main wallet was disrupted for a period. The company said in its disclosure that the service outage allowed funds to accumulate at an old address. The platform did not specify how long the disruption lasted. It added that it detected unusual activity in its systems on 21 October 2026. The following day, it identified irregular fund movements through blockchain data and reports from the user community.
According to the company’s explanation, the deposit mechanism credits funds to a user’s wallet as soon as they arrive at an old deposit address, then transfers them later to CoinDCX’s main wallet through a separate service. The platform said some users continued sending funds to old addresses despite being directed to use updated ones. Under this mechanism, a transfer outage does not prevent a deposit from appearing in a user’s wallet, but leaves the funds at the old address. The company described the loss as an amount it absorbed and did not say it would separately reimburse every financial loss. It also said it had been crediting users’ wallets when deposits arrived at those addresses.
CoinDCX linked the funds to legacy operational wallet infrastructure that it said was compromised in a security incident reported on 19 July 2025. It added that use of that infrastructure was halted after the incident. In an earlier report on the event, the company said about 44 million USDT had been moved through several transfers to two wallets. It said at the time that the earlier loss would be covered from its reserves and offered a reward of up to 25% of recovered funds to anyone who helped track and recover the assets. The company did not describe the October fund movements as a new breach and did not identify who carried out the transfers or how they occurred.
A blockchain data analysis found that 15,991,414.31 USDT moved on 21 October from addresses linked to CoinDCX on the Tron network to a new address. In a check conducted on 23 October, the analysis said at least 29,955.87 USDT remained in two other addresses that were not covered by the block. These figures place the observed fund movements in the context of the loss announced by the company, but do not prove that the funds were returned to it. CoinDCX said user deposit balances were unaffected. It added that trading, deposits and withdrawals continued without interruption during the 72 hours before its disclosure on 25 October.
The company acknowledged that it needed time to review the legacy infrastructure and verify the sequence of events, and said it could have disclosed the matter sooner. It added: "We could have been more proactive, but we shared this update as soon as the full picture was clear." It said it would strengthen monitoring and controls around the remaining systems and continue reminding users to update their deposit addresses. The incident renews focus on operational risks that can arise when deposits continue to reach old addresses after the associated infrastructure has been decommissioned. The company did not specify a date for completing the monitoring measures or address updates.