Authorities have launched a full-scale investigation after leading Indian cryptocurrency exchange CoinDCX reported a security breach resulting in the theft of nearly $44 million (approx. ₹384 crore) in digital assets.
As per BittMint resources, the breach was detected when CoinDCX’s internal monitoring systems flagged suspicious transactions originating from company wallets in the early hours of July 19. According to an FIR filed on July 22 by Hardeep Singh, Vice President of Public Policy and Government Affairs at CoinDCX, the attackers initially conducted a test transfer of just 1 USDT at 2:37 a.m., followed by a large-scale siphoning of $44 million a few hours later.
The attackers used a sophisticated laundering method to evade detection, funneling the funds through multiple wallets, which has significantly complicated tracing efforts.
Employee Arrested Amid Insider Threat Suspicions
Bengaluru police have arrested Rahul Agarwal, a CoinDCX employee, in connection with the breach. As per BittMint findings, investigators suspect insider collaboration played a role in facilitating the attack.
Sources close to the probe revealed that Agarwal had been freelancing using a company-issued laptop without authorization and had reportedly earned ₹15 lakh (~$18,000) over the past year from undisclosed external gigs. Authorities believe he may have exploited his access privileges or shared sensitive systems data with external threat actors.
A senior official involved said “His digital footprint and device activity are under detailed forensic scrutiny” who requested anonymity due to the sensitive nature of the case.
Ongoing Efforts to Recover Funds
Cybercrime teams are now coordinating with blockchain forensic experts to analyze transaction trails and trace the movement of the stolen assets across various wallets and exchanges. Recovery efforts are ongoing, and law enforcement agencies are reportedly in touch with major global exchanges to flag and freeze suspicious wallet addresses if detected.
CoinDCX has not released a public statement as of this writing but it is believed to be cooperating fully with authorities while reinforcing internal security protocols.
This incident adds to a growing list of high-profile crypto thefts in 2025, underscoring the persistent vulnerability of even regulated, mainstream exchanges in the face of evolving cyber threats.
Source: FIR filed with Bengaluru Police, BittMint reporting, NDTV References
Contact – bittmintofficial@gmail.com , contact@bittmint.com
