KoindcxIndia’s first digital asset unicorn, has suffered a serious security violation, resulting in a loss of $ 44.2 million. Hackers lost all means from one of its internal operational accounts – a critical account used for liquidity supply on a partner exchange that ensures smooth and efficient trade.
This marks India’s second large crypto hack within one year after 230 million dollars cyberattack on Wazirx Exchange In July 2024, performed by North Korea’s Lazarus group.
Coindcx has confirmed that customer supply Wallets Remain secure and INR withdrawals and trading operations continue to function normally. Despite the violation of the violation, CoindCX has assured users that no customer funds are at risk. Co -founder Sumit Gupta stated that the platform will take up the loss with its own reserves, which remain “enough healthy.” A thorough investigation is underway in collaboration with international security experts. Gupta mentioned that the exchange actively cooperates with law enforcement and forensic authorities to track and recover the stolen assets.
After the cyberattack, CoindCX received 31,462 INR withdrawal requests from customers. According to Gupta30,862 of these – approximately 98.09% – has already been successfully treated. The remaining 600 requests are ongoing and are expected to be completed within 72 hours of submission.
This incident increases ongoing concerns about the vulnerability of cryptop platforms in the midst of a rising wave of sophisticated cyberattacks.
Gupta shared that CoindCx’s internal security and operation team actively examines the event in collaboration with Top cyber security business. Their efforts focus on identifying and fixing vulnerabilities, tracking fund movements and working closely with their exchange partner to freeze and restore the relevant assets. Coindcx has announced A recovery cost program that offers up to 25% of recovery funds as a reward for individuals or law that helps to track and restore the stolen assets and, more critically, identify and help prosecute those responsible for the attack.
“Every security event is a learning and we will learn from this and further strengthen our platform, even more importantly this is our time to win this war against cyber threats in the industry and we commit ourselves to work with experts to secure our industry,” informed Gupta.
2021 became Coindcx India’s first digital asset unicorn after securing $ 90 million in fundingPressing its valuation to $ 1.1 billion. Next year it raised one Another $ 135 millionAlmost doubles its valuation to $ 2.15 billion. In July 2024, Coindcx took a significant step towards global expansion with acquire bitoasA digital asset platform based in Dubai. The exchange also listed BSV -Token for trading on their platform, allows users to have more ways to buy, sell and trade BSV.
‘Let’s legislate crypts’
In the past year, India received two of its most significant digital assets – first on Wazirx in July 2024Where hackers made $ 230 million in digital assets, and now on CoindCX, which confirmed a loss exceeding $ 40 million. These incidents have beaten the country’s two largest exchanges, with Wazirx alone lost almost 45% of its holding.
“Are Crypto Entrepreneurs only responsible for this worrying condition? Is our public policy and government, who have refused to adopt any crypto assets legislation and regulate their trade in exchanges also responsible?” Subhash GargPrevious financial and economic issues secretary, India’s government, raised questions In a LinkedIn post.
However US has moved quicklyPointed out Garg. The world’s largest economy has introduced extensive legislation, including laws for StableCoin regulation and the Conservation Act to define the legal framework for digital assets such as goods.
“We, however, vaccinate. For five years, the (Indian) government promises to bring a paper on the subject. Even that paper has not been delivered. Let’s not continue to sit on our hunches. Let’s deal with the crypto phenomena. Let’s meet it. Let us legislate crypt,” wrote Garg.
Garg’s comments come days after Pradeep BhandariNational spokesman for the ruling Bharatiya Janata Party (BJP), publicly required to create A National Bitcoin Reserve While emphasizing the critical need of Regulation. India’s current digital asset position –heavily taxed but still unregulated—For stuck in limbo. Bhandari repeated that a clear, decisive policy is quickly needed to unlock the sector’s potential and ensure investors’ protection and innovation.
“Clear Regulation could Bring Both Transparency and the Required Oversight to This Emerging Asset Class – Enabling Responsible Innovation While Protecting A Rising Investor Class. This is Essential for Foster Institutional Confidence and Building a Frame B.Shere Bitcoin can Strategy, “Bhandari Emphasized in an Item for India today.
In December 2024, the Indian government stated that there was no definitive timeline to launch extensive virtual digital assets (VDA). But in June 2025 signaled a change in the approachannounces plans to soon release a detailed discussion document on digital assets. This article will draw on insights from international bodies such as the International Monetary Fund (IMF) and Financial Stability Board (FSB).
India enforces one of the most severe tax regimens for digital asset trading, including a flat 30% tax on all profits from digital assets, without compensation for compensation losses, a tax of 1% deducted from the source (TD) on transactions exceeding $ 10,000 (approximately $ 116), and an 18% goods and services tax (GSt) on trading. According to a Report At the Esya Center, an Indian Policy Tanke Mediation, this framework can result in a potential loss of $ 1.2 trillion in trading volume on domestic exchanges.
The regulatory pressure has led to the Seychelles-based OKX exchange to leave the Indian marketwith reference to compliance challenges. Looking forward in 2025 is expected India’s digital asset sector undergo significant consolidationwith smaller exchanges that are likely to turn off or blend together with larger players. This trend is mainly run by the burdensome tax policy on virtual digital assets.
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