CoinDCX, one of India's largest cryptocurrency exchanges, announced a large-scale recovery bounty program offering compensation up to 25% after suffering a loss of approximately $44.2 million due to an internal wallet hacking. The incident occurred on July 19, and the attackers reportedly stole SOL and ETH and used Tornado Cash to evade asset tracking.
The leaked assets amounted to $28.3 million in SOL and $15.78 million in ETH. CoinDCX immediately blocked the wallet and covered the losses with company funds. CEO Sumit Gupta emphasized that the damage occurred solely from the exchange's reserves and that user assets are thoroughly protected in separate cold wallets.
According to CoinDCX's announcement, the recovery bounty program will provide up to 25% of the recovered amount as a reward to those who contribute to asset recovery. If the full amount is successfully recovered, the total compensation could reach up to $11 million. The program is open to ethical hackers, white hat researchers, and all individuals and institutions interested in enhancing cyber resilience.
CEO Gupta stated that "cyber crimes that destroy trust are an industry-wide issue" and explained that the program means more than just asset recovery, representing industry solidarity for rebuilding trust and security in the web3 ecosystem. The exchange is also processing quick withdrawals to alleviate user concerns, with 98% of 31,000 INR withdrawal requests completed in the last 24 hours, and the remaining 600 expected to be processed within 72 hours.
However, users have expressed dissatisfaction with the time taken to disclose the incident. While global exchange Bybit notified users within an hour of wallet breach, Indian exchanges are known for hours of delay. This follows a similar pattern to the WazirX hack in 2024, which involved $230 million, once again raising questions about the transparency and response capabilities of Indian cryptocurrency exchanges.
CoinDCX stated that this incident will be an opportunity to further strengthen corporate security standards and restructure risk management systems. The exchange aims to establish a cornerstone for improving cybersecurity across the industry through transparent handling of the hack.
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