CoinDCX cites a failed deposit sweep and says it credited affected users after a $16 million outflow was flagged, while ZachXBT questions its account

CoinDCX has given a fuller account after blockchain investigators flagged roughly $16 million in outflows from addresses linked to the exchange. A spokesperson acknowledged that some users continued to deposit funds to deprecated deposit addresses and that a temporary failure in the sweeping process, which moves deposits from those addresses into main wallets, caused operational losses, CoinDesk reported on October 23. CoinDCX said it has credited all affected users, that its current central and user addresses were not affected, that customer assets are in cold wallets and that trading continues as usual. CryptoSlate reported the exchange said it found the failure on the morning of October 22 and absorbed the losses; it gave no amount and no duration.

That goes further than the exchange's first reply, when chief executive Sumit Gupta said the flagged addresses were created in January 2025 and compromised in the July 2025 attack, and that the hackers appeared to be reusing them; he called the reports a false alarm, and a spokesperson said the activity had no connection to the exchange, CoinDesk reported.

ZachXBT, the on-chain investigator, says about $15.8 million in user deposits is unaccounted for and that deposit address TQKJQ was used by a liquidity provider for ten months after the July 2025 incident, sweeping deposits to CoinDCX's current hot wallet and receiving transaction-fee funding as recently as April and May 2026. CryptoSlate's review of on-chain data shows one transfer of 15,819,002 USDT from that address on October 21; the transfer shows tokens moving, not who controlled the addresses or whether customers lost money. CoinDesk said the dispute is unresolved. What to watch: whether CoinDCX publishes the amount it absorbed and how long the sweep was down.