CoinDCX, one of India’s largest cryptocurrency exchanges, suffered a major security breach, resulting in the theft of $44.2 million on July 19.
In a swift and bold response, CoinDCX has announced an unprecedented “Recovery Bounty Program.” It is offering up to 25% of any recovered funds, potentially $11 million, to individuals or teams who help trace, recover, and assist in the conviction of those responsible for the digital heist.
The hack, detected on July 19, targeted an internal operational account used exclusively for liquidity provisioning on a partner exchange.
According to the company, the breach did not endanger user assets, as customer funds are isolated and stored securely in cold wallets. Instead, the losses impacted CoinDCX’s treasury reserves, a critical yet clear distinction for rattled users.
Blockchain sleuths, including ZachXBT and Cyvers Alerts, traced the origins of the attack to the use of Tornado Cash. The hacker first funded their operation with 1 ETH (Ethereum) from Tornado Cash, then swiftly moved stolen funds across networks, bridging just under $16 million onto Ethereum and shifting millions more through Solana wallets.
At one stage, the compromised Ethereum address held over 12,000 ETH, worth more than $46 million.
CoinDCX Response To Heist
The platform now invites ethical hackers, white-hat researchers, cybercrime experts, and ecosystem partners to collaborate in the fund recovery mission.
Anyone able to help return part or all of the lost assets and aid in holding the perpetrators accountable stands to receive a share proportional to the amount recovered, with a maximum payout of $11 million if the entire sum is restored.
CoinDCX emphasized that customer operations remain unaffected and that all withdrawal and trading activities continue as usual. Still, the company called the hack “a wake-up call” and pledged to tighten internal controls.
The precision with which operational and customer funds are segregated allowed CoinDCX to absorb the blow. However, the company has moved to further reinforce its infrastructure and operations.
The exchange has publicly thanked its partner organizations, which range from blockchain security firms to bridge protocols and foundations, for their assistance in forensics and asset tracing. CoinDCX is leveraging help from industry leaders such as Sygnia, zeroShadow, Seal911, and ecosystem players, including the Solana Foundation, Superteam, Wormhole, and deBridge.
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