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The CoinDCX Hack What Went Down and What We Can Learn From It A few days ago news started spreading about a security issue with CoinDCX for many people in the Indian crypto space this came as a surprise. CoinDCX has always been seen as one of the more trusted crypto exchanges in the country but yes it happened a breach that led to over ₹9 crore worth of assets being moved out from one of their wallets let’s break this down in simple terms without too much technical stuff. First Things First: What Actually Happened? On July 14th some on chain trackers noticed weird activity from a CoinDCX wallet not long after the exchange confirmed it themselves they had suffered a hack about $1.1 million worth of crypto was taken that’s no small number. They immediately paused crypto withdrawals so if you tried to move your crypto around that day you might have noticed it wasn’t working however INR deposits and withdrawals were still live. Was It Their Main System? No Here is the thing the core systems weren’t hit the breach happened through a hot wallet If you are not familiar hot wallets are always connected to the internet they are used for day to day transfers but they’re also riskier than cold wallets which stay offline. What’s more, this wallet was tied to a third party service so it looks like the weakness wasn’t directly inside CoinDCX but in something connected to it. This could have been anything leaked credentials a bug in a connected service, maybe an API exploit we don’t know the full story yet. How Did CoinDCX React? Pretty fast actually they locked down the affected wallet stopped all crypto withdrawals as a precaution and started a full investigation they brought in cyber experts contacted law enforcement, and reassured users that the lost funds would be covered. They were clear: no customer would lose their money. People Had Mixed Reactions Some appreciated the fast response. Others, not so much. On Twitter, Telegram, and Reddit, users started asking deeper questions how did this happen, why did it take on chain detectives to flag it first and what kind of security checks were missed? There were also users warning others to avoid keeping too much crypto on exchanges not just CoinDCX any exchange really. And they have got a point. The Bigger Picture: Self Custody Matters This incident is another reminder that exchanges are convenient but not always the safest place to store your crypto If you are holding a large amount for the long term consider using a hardware wallet or a secure self custody method. Use exchanges for trading sure but maybe don’t treat them like a bank. What Happens Now ? CoinDCX says a full report will be released once they finish their internal checks they are also reviewing their third party integrations beefing up security and tightening internal protocols. Meanwhile, the whole situation might lead to tighter crypto regulations in India something that’s already being discussed in the background.