New Delhi: Crypto exchange CoinDCX has acknowledged that some users kept depositing funds into old, deprecated wallets linked to its July 2025 security breach, leading to losses of about $16 million.
According to the company, the process for sweeping deposits out of those old wallets failed temporarily. During that window, the compromised wallets were misused.
CoinDCX said the affected users have been credited and that customer funds remain safe. It said the company absorbed the losses.
The incident has renewed concerns over security and regulation in India's crypto sector. Experts have called for stronger oversight and audits.
Discussion of the July 2025 breach was intense at the time. The fresh disclosure makes clear that the fallout from that incident is still playing out.
Such incidents at crypto exchanges affect investor confidence. With crypto asset regulation in India still developing, experts advise users to take their own precautions.
The company said its regulated Digital Signature Certificate and eSign businesses were unaffected by the incident.
Experts have called for regular security audits, keeping funds in cold storage and mandatory two-factor authentication to prevent such incidents. With crypto asset regulation still developing in India, users are advised to weigh the risks before investing. Sending funds to old wallet addresses is also best avoided.
Incidents of this kind at exchanges tend to affect investor confidence. With crypto regulation still taking shape in India, experts say users should understand the risks, check an exchange's security record and know where to complain if funds are hit.