CoinDCX Disputes Wallet Activity Claims Amid $16M Transfer Investigation
Indian crypto exchange CoinDCX has pledged user fund protection after blockchain analysts raised questions about transactions from wallets the company said were abandoned following its July 2025 security incident.
Transfers Spark New Questions for Troubled Exchange
Indian cryptocurrency exchange CoinDCX moved to reassure users after blockchain investigators flagged approximately $16 million in transfers from wallets connected to the platform. The flagged activity drew scrutiny from multiple analysts examining transaction patterns on blockchain networks, prompting CoinDCX to issue a public statement addressing concerns about the movements.
According to CoinDCX, the wallets in question were created in January 2025 and compromised during a security incident in July 2025. The company stated it has not utilized these wallets since the breach occurred. In a response posted Thursday, Chief Executive Sumit Gupta acknowledged the investigation while providing assurance that customer assets remain protected.
Analysts Question Timeline and Wallet Usage
Blockchain investigator ZachXBT challenged CoinDCX’s account of events, presenting evidence that a CoinDCX deposit address remained active in ongoing transactions for 10 months following the July 2025 incident. According to ZachXBT’s analysis, the address continued routing user deposits toward the exchange’s current public wallet infrastructure and received funds to cover transaction expenses, suggesting continued operational involvement rather than abandonment.
Asset recovery platform FlashRescue’s Darcy also raised concerns Thursday, highlighting the $16 million in transfers and noting that two addresses included in CoinDCX’s most recent proof of reserves had sent funds to the flagged address on the Tron network. These claims added complexity to CoinDCX’s explanation and prompted further examination of the exchange’s wallet management practices.
Context of Ongoing Recovery Efforts
CoinDCX’s current situation stems partly from its history with security breaches. The platform experienced a $44 million breach in July of the previous year, which the company attributed to a compromised account. At that time, CoinDCX maintained that customer holdings were isolated from the affected account and committed to covering losses using its own financial reserves. The exchange did not immediately provide additional comment to Cointelegraph regarding the latest allegations.
Gupta’s statement that the company would share further details soon suggests an ongoing investigation into the matter. The executive’s emphasis on protecting customer funds reflects the heightened scrutiny crypto platforms face following major security incidents, where investor confidence depends on transparent communication and demonstrated financial stability.
The situation underscores persistent challenges within cryptocurrency exchanges regarding wallet management, security protocols, and the ability to verify claims about fund separation and reserve coverage through on-chain analysis.
Source: Cointelegraph. Not financial advice.