CoinDCX confirms $15.99 million drain through deprecated wallets
CIE News ·
Confirmed by 2 independent news outlets.
CoinDCX confirmed a 15.99 million USDT loss after an automated sweeping script failed on retired wallets. The exchange absorbed the loss, and user balances remain unaffected.
Indian cryptocurrency exchange CoinDCX confirmed on October 25, 2026, that an attacker drained 15.99 million Tether (USDT) and 5,783.81 TRX through deprecated operational wallet infrastructure on the Tron network. The breach began on October 21, 2026, when funds transferred from an old deposit address to a consolidation address before moving through intermediate wallets to Binance, OKX, and Gate. CoinDCX stated that it has absorbed the entire $15.99 million loss.
The exchange explained that the affected addresses had been retired after a July 2025 security incident, but some users continued sending funds to them. Under normal conditions, an automated sweeping system credited users instantly while transferring their deposits to secure wallets. However, the sweeping script failed, allowing tokens to accumulate in the vulnerable addresses. Tether subsequently froze roughly $2.21 million of the stolen assets.
The admission followed initial denials by CoinDCX executives. On October 22, 2026, CEO Sumit Gupta dismissed breach reports as a false alarm, asserting that current operational wallets remained secure and that attackers were simply reusing addresses from the previous year's exploit. CoinDCX later acknowledged it could have communicated more proactively and stated that current trading, deposits, and customer balances were not impacted.
Key facts
- $15.99M USDT drained
- 5,783.81 TRX stolen
- $2.21M frozen by Tether
- Sweeping script failed
Read the original at crypto.news