CoinDCX Shaken by $44M Hack: Inside the Sophisticated Server Attack

Server Breach Strikes Indian Crypto Giant

Buckle up, crypto fans! CoinDCX just got hit with a $44 million hack, and it's all because their server got compromised. But here's the kicker: it only affected one of their internal liquidity accounts. Phew, customer funds are safe!

The Attack: A Timeline

Hold onto your hats, folks. On July 19 at 4 a.m. IST, CoinDCX noticed some shady business going down. Unauthorized access was detected in an account used for liquidity on a partner exchange. The Indian crypto exchange spilled the beans in a detailed report on July 20, saying they'll cover the entire loss from their treasury. Talk about taking one for the team!

The Breach: A Sophisticated Server Attack

Get this: CoinDCX called it a "sophisticated server attack" that burrowed its way into their liquidity infrastructure. But don't panic, user wallets are chillin' in separate cold storage, untouched by the chaos.

Business as Usual?

Despite the mayhem, INR withdrawals, deposits, and trading are still going strong. They did hit pause on web3 wallet functionality for a hot minute, but it's back in action now.

On the Hunt for the Hacker

CoinDCX isn't messing around. "Your funds are 100% safe," they declared, and they're teaming up with international cybersecurity gurus, blockchain detectives, and Indian authorities, including CERT-In, to track down the stolen loot and unmask the culprit. They're even launching a Recovery Bounty Program to sweeten the deal for anyone who can help recover the funds.

Delayed Disclosure: A Calculated Move

Here's the tea: CoinDCX held off on going public for about 17 hours, but it looks like they were busy containing the damage and digging into the forensics before spilling the beans. They're standing firm on their strong reserves and proof-of-reserves, ensuring that customer assets are untouchable.

India's Crypto Scene: Still Shaky?

This breach is stirring up some serious déjà vu, coming just a year after WazirX's $230 million hack. It's got everyone questioning the resilience of India's crypto infrastructure. But CoinDCX is holding it down, absorbing the entire loss without skipping a beat or messing with user activities.

The Trail of the Thief

Blockchain sleuth ZachXBT was on the case early, flagging the breach on July 19 and following the hacker's trail through Tornado Cash and across Solana (SOL) and Ethereum (ETH). According to Arkham Intelligence, the stolen funds have been bouncing around several wallets and are now chilling in two known addresses. The chase is on!