ZachXBT Urges CoinDCX Withdrawals Amid $16M Theft Dispute
ZachXBT urged CoinDCX withdrawals over alleged $16 million losses. The exchange cited failed sweeps from old compromised addresses and said users were credited.
Key Notes
- ZachXBT urged withdrawals and alleged a $16 million theft, challenging CoinDCX’s transparency.
- CoinDCX acknowledged losses from failed sweeps of old compromised addresses and said affected users were credited.
- The exchange denies an active-wallet breach, while Onchain Lens questions the transaction paths.
Blockchain investigator ZachXBT urged users to withdraw funds from CoinDCX on October 22, accusing the Indian crypto exchange’s leadership of mishandling disclosures about what he described as a $16 million theft.
CoinDCX acknowledged operational losses from a failed process for collecting deposits sent to previously compromised wallet addresses. In its response, the exchange said it absorbed those losses, credited affected users and found no compromise of its active central or customer wallets.
ZachXBT’s warning challenged both the exchange’s explanation and its transparency. The $16 million figure is his characterization; CoinDCX’s statement acknowledged losses without giving their dollar amount.
ZachXBT Challenges the Exchange’s Disclosures
ZachXBT accused CoinDCX of initially denying a theft in public and private before acknowledging losses. He said the exchange’s handling of the issue reflected either dishonesty or serious incompetence. Those are the investigator’s allegations, rather than findings by a regulator or court.
He also said he helped freeze a six-figure sum for CoinDCX. His post did not provide a precise amount or establish that the disputed funds had been fully recovered.
CoinDCX Points to Deprecated Deposit Addresses
The exchange said the addresses at issue were created in early 2025 and compromised during its July 2025 security incident. It subsequently deprecated them and warned customers not to send further deposits there.
Some users nevertheless continued depositing, CoinDCX said. A routine sweeping process was meant to account for and secure those deposits, but the company said it discovered on October 22 that this process had failed for a period, causing operational losses.
Sweeping collects funds from deposit addresses into managed wallets. CoinDCX attributed this episode to that process and the old compromised addresses, while maintaining that its currently active wallets were unaffected.
The company said affected users had been credited despite depositing to deprecated addresses. It also said customer funds remained safe in segregated cold wallets and that trading and platform operations continued normally. These are CoinDCX’s assurances, not an independent audit of its balances.
Onchain Lens Raises Further Transaction Questions
In a separate post, Onchain Lens alleged that deposits reached an unaccounted-for wallet before a nearly equivalent amount was drained. It also alleged that funds linked to CoinDCX hot wallets moved through unusual bridging services, OTC intermediaries and mixing platforms.
Those tracing allegations do not by themselves establish who controlled each address or authorized the transfers. The central disagreement remains whether CoinDCX’s account of a failed sweep from old compromised addresses adequately explains the movements investigators flagged.
CoinScreamer previously covered ZachXBT’s undercover investigation into a separate laundering network. That case is background on his work and is not evidence of a connection to CoinDCX.
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