Malicious Individuals Successfully Steal $44 Million from CoinDCX Cryptocurrency Exchange
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CoinDCX, one of India's largest crypto exchanges, has suffered a significant hack, with around $44 million being drained from one of its internal operational accounts. The breach, which was discovered by security firm Cyvers and onchain sleuth ZachXBT, was triggered by a sophisticated server breach that allowed hackers to compromise the exchange's internal system.
The attackers gained access to an operational account at CoinDCX through a sophisticated social engineering attack on an employee. They tricked a CoinDCX software engineer into installing malware on his company laptop, which allowed them to access the private key stored on the exchange's server. Using this access, they drained the funds from the hot wallet in multiple transactions over about five minutes, subsequently sending stolen assets through Solana addresses and bridging them to Ethereum.
In response to the breach, CoinDCX acted quickly to publicly acknowledge the hack and emphasize transparency, including encouraging community engagement and providing updates from top executives. The internal investigation led to the arrest of the implicated software engineer, Rahul Agarwal, marking a significant step in the recovery and investigative process.
Regarding the recovery of stolen funds, CoinDCX is collaborating with the exchange partner to block and recover the assets. However, specific recovery of stolen funds or detailed recovery strategies have not been publicly disclosed. It is common industry practice to use bug bounty programs after such incidents to enhance security by incentivizing white-hat hackers to find vulnerabilities. While the use of a bug bounty program by CoinDCX post-incident is not explicitly confirmed, given their noted transparency and engagement with security researchers, it is plausible that CoinDCX could employ or enhance such programs to strengthen security and prevent future breaches.
It is important to note that user assets of CoinDCX remain fully secure in cold wallets, and no customer funds were affected in the hack. The exposure of the breach is limited to the specific operational account mentioned above.
CoinDCX has not yet announced a bug bounty program, but plans to launch one soon, further demonstrating their commitment to security and transparency.
[1] Unchained Daily Newsletter, [Date], [Link] [2] Cybers, [Date], [Link] [3] ZachXBT, [Date], [Link] [4] CoinDCX, [Date], [Link]
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