CoinDCX to absorb $44 million security breach loss: CEO Sumit Gupta

Crypto exchange platform CoinDCX will absorb the entire $44 million loss -- equivalent to about three to four months of its revenue -- from an alleged security breach on its balance sheet this financial year (FY26), said Sumit Gupta, co-founder and CEO of the company. The theft was reported on July 19.

 

The case was the second security breach at an Indian crypto exchange after WazirX’s $230 million theft in July last year.

 

“We have absorbed the (lost) amount on our balance sheet. We have a healthy balance sheet. It’s like three to four months of our revenue. Business continues as usual,” Gupta told Business Standard. 

 

Gupta maintained that customer funds on the platform were not compromised, since they were parked on a cold wallet infrastructure. Cold wallets provide better security as they are not connected to the internet and are based on physical, hardware-based devices. 

 

“The law enforcement agencies and local security experts were investigating the breach, with initial findings indicating it was a social engineering attack,” Gupta added. 

 

Last year, the company had constituted a Crypto Investor Protection Fund (CIPF) with a total corpus value of ₹60.08 crore as of June 2025. However, the lost amount will not be recovered from this corpus, since customer funds were not impacted. 

 

Instead, the lost amount will be recovered from the company’s treasury. 

 

The company said in a blog post that its annualised revenue at a group-level stood at ₹1,179 crore with more than ₹10,000 crore as of financial year 2025 (FY25). 

 

The DCX group represents companies such as CoinDCX in India, BitOasis in the United Arab Emirates and Bahrain, and Okto.

 

Gupta also clarified that the company was not in active discussions with any companies or investors to raise capital or sell the crypto firm, adding that the company’s valuation was pegged at $2.5 billion, up from $2.2 billion in 2022 -- when it last raised capital. CoinDCX has raised ₹2,144 crore to date. 

 

The clarification comes amid reports of US-based Coinbase being in discussions to acquire CoinDCX at a valuation of less than $1 billion. 

 

“There are no active conversations. We continue to build, remain strong, and we continue to educate people… the idea is to invest more and strengthen the security front,” he added.  

Decoding the crisis

Customer funds on the platform not compromised owing to cold wallet infrastructure

  Cold wallets are not connected to internet, hence give better security

  The lost amount will be recovered from the company’s treasury and not via Crypto Investor Protection Fund