CoinDCX Says Internal System Error Led to $16 Million Loss
Summary
- India’s largest digital-asset exchange, CoinDCX, said it suffered a loss of about $16 million due to an internal system error.
- CoinDCX said about $15.99 million worth of Tether (USDT) was drained from a discontinued wallet, and that the company absorbed the full loss.
- CoinDCX added that all customer assets are stored securely in separate cold wallets and that it is conducting a thorough review of its existing wallet system.
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CoinDCX, India’s largest digital-asset exchange, said it incurred a loss of about $16 million because of an internal system error.
CoinDesk reported on October 26 that CoinDCX said about $15.99 million worth of Tether, or USDT, was drained from a wallet that had been taken out of use after a hacking incident last year. The exchange said it would absorb the full loss.
Some users mistakenly sent digital assets to the wallet after it was decommissioned following the hack in July last year. Funds accumulated there because the internal system did not operate properly for a period of time.
Earlier, on-chain analysts detected suspicious outflows of about $16 million from wallets linked to CoinDCX.
CoinDCX said the problem occurred while transferring funds that had built up in the discontinued wallet, resulting in a loss of $15.99 million. The company said it covered the entire amount.
It added that all customer assets are stored securely in separate cold wallets and that it took time to thoroughly review the existing wallet system and determine the cause of the incident.
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