CoinDCX Software Engineer Arrested in Connection to $44 Million Hack (Report)

The Indian alternate is the newest sufferer of dangerous actors exploiting vulnerabilities and taking management of inside methods, leading to hundreds of thousands of {dollars} being misplaced.

The losses this 12 months, total, are already within the billions, and, regrettably, proceed to extend at an alarming tempo.

Particulars on What Occurred

A neighborhood Indian information outlet, The Occasions of India, shared the story about Rahul Agarwal, a employees member of the CoinDCX alternate, whose login data was compromised. He has been taken into custody by Bengaluru authorities, reportedly linked to a ₹379-crore ($44 million) exploit of funds.

The alarm was raised following a grievance by Nebilo Applied sciences, the corporate that runs the alternate. Their Vice President for public coverage, Hardeep Singh, said the next:

“Rahul had a everlasting function inside the firm, and he was supplied with a laptop computer strictly for work. Our investigation started after we found that an unknown individual had gained unauthorized entry to our methods on July nineteenth, round 2:30 am, by transferring 1 USDT to an exterior pockets. A number of hours later, round 9:30 a.m., the $44 million was siphoned off and distributed amongst six wallets.

Throughout his questioning by the police, Agarwal maintained his harmless stance, claiming he knew nothing concerning the hack. Nevertheless, he did admit to “moonlighting” (working a second job exterior common enterprise hours) with three to 4 non-public events, with out totally vetting them. 

It’s additional famous that the accused acquired ₹15 lakh (~$17,000) in his private checking account from an unknown supply. The Bengaluru police additionally level out that Agarwal claimed to have acquired a cellphone name from a German cellphone quantity, stating he “had a couple of information to finish.” 

He believes a type of information was fitted with malware, which granted the attackers entry to CoinDCX’s inside methods, and he remained adamant that he was unaware of what was occurring till the corporate summoned him.

The alternate’s founder and CEO, Sumit Gupta, shared the bitter information of the assault on X, calling it a “subtle social engineering assault,” however with out having the ability to disclose any additional data on what had transpired.

Some media studies have surfaced referencing the FIR we filed with the Karnataka Police relating to the safety incident that impacted our platform.

As that is an ongoing investigation, we sadly can’t have interaction with the media or public on this situation. We wish to make sure the…

— Sumit Gupta (CoinDCX) (@smtgpt) July 31, 2025

Hefty Losses

Sadly, the assaults on crypto exchanges are on the rise, growing in complexity, and the injury to their coffers is critical.

Essentially the most notable instance is the hack on Bybit in February, which resulted in a $1.5 billion loss, linked to the North Korean Lazarus Group.

General, 2025 has seen monumental quantities of funds stolen, topping information from earlier years solely throughout the first half of the 12 months.

These incidents serve for example of how geopolitical tensions, cybersecurity vulnerabilities, and complicated adversaries proceed to pose a major danger to even well-established cryptocurrency platforms.