CoinDCX Founder: No Coinbase Deal, Despite Hack

Contrary to recent reports, CoinDCX, a prominent Indian cryptocurrency exchange, is not entertaining acquisition offers, according to its CEO, Sumit Gupta. He specifically addressed rumors that Coinbase, a global crypto platform, was in advanced talks to acquire CoinDCX.

Gupta used social media platform X to counter a report published by Mint, which stated that Coinbase was discussing a potential acquisition of CoinDCX for close to $1 billion. This announcement comes shortly after CoinDCX suffered a $44.2 million loss due to a security breach affecting its operational wallet.

In a tweet, Gupta firmly stated, “Ignore the rumors! CoinDCX is ‘super focused’ on building for India’s crypto story and not up for sale.” He added that he would provide more information later but wanted to immediately dispel the acquisition claims.

When reached out for clarification, CoinDCX referred Decrypt to Gupta’s statement on X.

The report outlining the potential acquisition suggested a valuation of under $900 million for CoinDCX, a significant decrease from its $2.2 billion valuation achieved three years prior, according to undisclosed sources.

Coinbase reportedly views a possible CoinDCX acquisition as a “long-term strategic bet” and a “low-cost gamble” to establish a strong foothold in the expanding Indian cryptocurrency market.

Coinbase has not yet responded to Decrypt’s inquiry regarding the potential acquisition.

“Coinbase’s potential acquisition of CoinDCX validates that view and signals the scale of what’s to come,” commented Upmanyu Misra, a former investment banker from Citibank and JP Morgan, currently working as a risk policy advisor, to Decrypt.

Misra explained that improving regulatory clarity is fostering strategic consolidation within the industry, with international players rapidly moving to outpace local competition, secure key talent, and gain market dominance. He considers this a preliminary step toward broader industry restructuring.

Meanwhile, Coinbase, having secured registration with India’s Financial Intelligence Unit (FIU) in March, has openly expressed its ambition to grow in the region.

“India represents one of the most exciting market opportunities in the world today,” stated John O’Loghlen, Coinbase’s APAC Managing Director, in a blog post issued in March, coinciding with the announcement of the FIU registration.

The initial report also mentioned that Coinbase might consider combining its existing investments in CoinDCX and its rival, CoinSwitch.

Addressing the acquisition rumors, CoinSwitch told Decrypt, “We don’t have active conversations in this regard at this time.”

“We believe competition is good and it will ultimately benefit users,” the CoinSwitch representative added. “And with our understanding of the Indian ecosystem, we will continue to be a leader in India’s crypto ecosystem.”

These acquisition rumors have emerged shortly after CoinDCX experienced a major security incident, impacting India’s crypto community and raising concerns about the exchange’s security protocols.

In response to the hack, CoinDCX declared it would cover all losses from its reserve funds and initiated a bounty program offering ethical hackers a reward of up to 25% of recovered funds.