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Karthik Soni
Karthik Soni

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Exposed: Who Reported the $44M CoinDCX Hack First?

The $44M CoinDCX hack shocked the Indian crypto space—but who broke the news first? Here’s the full timeline, facts, and what it means for users’ trust.

CoinDCX Hack – The Calm, Then the Storm

On July 19, 2025, India’s largest crypto exchange, CoinDCX, became the latest in a series of platforms to suffer a significant security breach. A hacker siphoned off approximately $44.2 million from one of its liquidity provisioning wallets, triggering alarm bells across the industry.

But here’s the kicker: CoinDCX didn’t report the hack first.

Instead, it was independent blockchain security firms and on-chain investigators who identified the suspicious outflows and exposed the incident—well before CoinDCX acknowledged it publicly.

This article breaks down the exact timeline of events, identifies the first movers in the story, and explores what this means for crypto transparency, user trust, and platform accountability.

What Was the $44 million CoinDCX Hack?

On-chain activity flagged the theft of over $44 million, primarily from Solana-based wallets linked to CoinDCX.

What We Know:

  • Target: CoinDCX operational wallet (liquidity provisioning)

  • Method: Unauthorized access; potential private key compromise

  • Networks involved: Solana (initial exploit), Ethereum (where funds were bridged)

  • Tools used: Tornado Cash (for obfuscation), cross-chain bridges

CoinDCX later confirmed the incident, stating that user funds were unaffected and the exchange would absorb all losses.

But the big question remains…

Who Reported the CoinDCX Hack First?

Let’s walk through the real timeline.

1: Cyvers Alerts (Initial Detection)

On July 19, Cyvers, a real-time blockchain threat detection platform, published an alert on X (formerly Twitter):

They linked blockchain addresses, described the attacker’s flow of funds, and provided technical insights into the exploit.

Important Detail: At this point, CoinDCX had said NOTHING publicly.

2: ZachXBT Confirms the Victim

Shortly after the Cyvers alert,ZachXBT, a well-known independent blockchain investigator, added weight to the story.

He confirmed that CoinDCX was the hacked party, linking their known wallet addresses and praising Cyvers for the early detection.

3: CoinDCX Issues a Statement (17 Hours Later)

Only after both Cyvers and ZachXBT made the breach public did CoinDCX release an official statement on X.

Time between the initial alert and CoinDCX statement: ~17 hours

Why Timing Matters in a Crypto Hack

In the world of crypto, where funds move in real time and reputations can vanish overnight, timely disclosure is critical. Here’s why CoinDCX’s delayed acknowledgment raises eyebrows:

Risk of User Panic

The longer an exchange remains silent, the more users speculate — often triggering mass withdrawals or FUD (Fear, Uncertainty, Doubt).

Transparency Is Key to Trust

In the post-FTX world, users demand proof, not promises. When third parties beat a platform to its own disclosure, it hurts credibility.

Regulatory Expectations Are Evolving

Jurisdictions like Singapore (under MAS) and Europe (under MiCA) are increasing pressure on platforms to disclose breaches rapidly. While India lacks clear crypto regulation, global norms are shifting.

What CoinDCX Claimed vs. What’s Proven

Let’s break down CoinDCX’s post-hack claims and assess what’s been verified:

Real-Life Example: WazirX vs. CoinDCX

Just a year ago, WazirX suffered a massive $234.9 million cyberattack—one of the biggest crypto breaches in Indian history.

In comparison, CoinDCX lost $44.2 million, which is less than 20% of what was stolen from WazirX.

Yet, the response and expectations from the crypto community have been curiously uneven.
WazirX faced harsh criticism for its communication delay. But the company chose a legal and structured recovery route:

  • Filed in the Singapore High Court to ensure creditor protection

  • Sought court approval to return 85% of user funds

  • Published a full creditor scheme, liabilities report, and a timeline for restitution

Meanwhile, CoinDCX took** 17 hours to publicly acknowledge its breach**—and that too only after on-chain analysts and third-party firms exposed it first.

Despite this, some in the ecosystem are praising CoinDCX for its supposed "quick response" and transparency.

Double standards? When WazirX was attacked, it was called slow. When CoinDCX stays silent for 17 hours—crickets.

The crypto community deserves better than selective outrage.

Pros & Cons of CoinDCX’s Response

✅ Pros

  • Acknowledged hack publicly (eventually)

  • Promised to absorb the loss, protecting users

  • Initiated a recovery bounty

❌ Cons

  • Disclosure came 17 hours late, after third parties made it public

  • No audit, no liabilities, no Merkle Tree

  • Lack of clarity around wallet security architecture

  • PR statements without technical backing

Transparency Can’t Be Optional

The CoinDCX hack has once again highlighted a critical truth in crypto: transparency must be proactive, not reactive.

While it’s reassuring that the exchange claims to protect user funds, proof matters more than promises. And when third-party investigators beat you to your own breach disclosure, your reputation suffers.

What Should CoinDCX Do Now?

  • Publish a detailed post-mortem report

  • Release liabilities data and audit trail

  • Provide Merkle Tree-based proof of user funds

  • Clarify whether funds are legally segregated in trust

Until then, the industry—and users—have every right to keep asking:

“If you’re transparent, why weren’t you the first to tell us?”

Let’s keep asking the hard questions until crypto becomes safer for everyone.

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