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A major security breach was reported at Indian cryptocurrency exchange CoinDCX in recent days. Because of the security breach**** the company lost approximately Rs 378 crore (USD 44.2 million). As per reports the incident took place on July 19 at around 4 am. Someone made unauthorised access to an internal operational account on a partner exchange. However CoinDCX has assured its users that the security breach will not affect their funds and they will remain secure. CoinDCX Filed An FIR According to the FIR the Indian cryptocurrency exchange stated that it is covering the entire financial loss using its own treasury funds so customers won’t be affected. Co-founders Sumit Gupta and Neeraj Khandelwal took to X and attributed the major security breach to “sophisticated server attack” that attacked the internal wallet whish is used by the company for liquidity provisioning. “Today one of our internal operational accounts - used only for liquidity provisioning on a partner exchange - was compromised due to a sophisticated server breach. I confirm that the CoinDCX wallets used to store customer assets are not impacted and are completely safe. This won’t cause any loss to our customers. CoinDCX will be bearing the full amount” Gupta wrote in the post. “The total amount lost was Rs378 crore ($44 million) out of our treasury assets. CoinDCX Treasury will be bearing these losses” Khandelwal posted. Who Detected The Security Breach? The security breach was first detected by blockchain investigator ZachXBT following which CoinDCX made the announcement. A 17-hour delay in publicly disclosing the incident has drawn online criticism despite widespread praise for the companys efforts to safeguard user funds. Withdrawal Requests Overwhelmed CoinDCX’s Systems As soon as the security breach news came out users overwhelmed the CoinDCX’s systems with withdrawal requests leading to its portfolio APIs becoming temporarily unresponsive. The API is responsible for displaying balances and transaction histories but due to the unresponsiveness several users were stuck and were unable to view their holdings. Following a security breach CoinDCX fired leading cybersecurity firms and reported the incident to Indias CERT-In. A full investigation is underway and the company plans to release its findings. This incident comes after a significant 2024 hack of WazirX resulting in Indias largest cryptocurrency exchange theft to date exceeding Rs1965 crore (USD 230 million).