“This wallet is part of our previous operational wallet system, which was compromised during the security breach we disclosed on July 19, 2025, and was subsequently taken out of use,” CoinDCX stated.
The announcement clarified that some users inadvertently kept depositing money into these retired addresses even after they were marked inactive following the 2025 incident. CoinDCX promptly credited the affected users’ accounts as soon as the funds were received in the retired wallet.
Additionally, a secondary function known as sweeping was intended to transfer funds from the retired address into the main CoinDCX wallet.
However, this process encountered issues for a certain duration, leading to a backlog of deposits in the retired address.
“This resulted in a loss of 15.99 million USDT, which the company has absorbed,” CoinDCX revealed. The blog post refrained from labeling it a hack and did not specify who might be responsible for the unusual fund movements or how they occurred.
CoinDesk has reached out to CoinDCX to clarify whether the old, inactive addresses experienced another breach.
“We want to emphasize that all user assets remain secure in protected, segregated cold wallets, safeguarded by multi-layer custody and offline security measures,” the exchange assured. Cold wallets are intentionally kept offline for security reasons.