CoinDCX absorbs 15.99 million USDT loss after wallet sweep failed

CoinDCX says a failed service for moving deposits from retired wallets led to a loss of 15.99 million USDT, which the Indian exchange has absorbed. Customer account balances, active wallets and trading systems were unaffected, according to the company’s October 25 update. CoinDesk reported that the exchange had first dismissed reports of suspicious outflows as a false alarm.

How did deposits reach wallets CoinDCX had retired?

Some customers kept sending funds to old deposit addresses after CoinDCX deprecated the wallet infrastructure following a security incident reported on July 19, 2025. CoinDCX says it had instructed customers to use updated addresses, but deposits continued arriving at the old ones.

The exchange’s process had two steps. First, when a deposit reached an old address, CoinDCX credited it to the customer’s portfolio. Then a separate automated service, called sweeping, was meant to move the cryptocurrency from that address into CoinDCX’s primary wallet. The two-step setup meant customers could see the deposit credited before the underlying funds had been moved.

Think of the old address as a retired mail slot that still accepts deliveries: the crediting step recorded each delivery, while the sweeper was meant to carry it to the main store. CoinDCX says that second step failed for a period it has not specified, allowing deposits to accumulate in infrastructure that had unknown vulnerabilities.

When did CoinDCX detect the problem, and what was lost?

The company says it noticed unusual activity in its systems on October 21, then identified irregular fund movements the next day through blockchain data and reports from its user community. Its review linked the activity to the old wallet infrastructure and the failed sweep. CoinDCX put the resulting loss at 15.99 million USDT and said the company absorbed it.

The update does not specify when the service stopped working, how long deposits accumulated, or who moved the funds. CoinDCX says its immediate controls prevented an impact on active wallets and trading systems, and that customer crypto deposit balances remain fully accounted for. It also says trading, deposits and withdrawals continued without a pause.

What changes next for old deposit addresses?

CoinDCX says it will strengthen monitoring and controls around residual systems and remind customers to update old deposit addresses. It advises checking the current address in its app or website before each deposit. The company acknowledged it could have been more proactive in communicating while it reviewed the sequence of events.

The confirmed change is that a failed internal transfer process left deposits exposed in retired infrastructure and cost CoinDCX 15.99 million USDT. The next points to watch are the monitoring changes the exchange says it will make and whether it gives more detail about the failure period and fund movements.

References

• October 25 update — coindcx.com
• reported — coindesk.com