CoinDCX confirms a $15.99 million loss from retired wallets days after denying a hack, as Tether freezes $2.21 million and tracers follow $9.6 million to exchanges

The Indian crypto exchange CoinDCX has confirmed that it lost about 15.99 million USDT through compromised legacy wallet infrastructure, days after it rejected reports of a hack, crypto.news reported on October 25. The account goes further than its October 23 explanation of a failed deposit sweep.

CoinDCX said a failure in its automated deposit-sweeping service let deposits pile up at an address that customers kept using after being told to switch to newer wallets, in an incident on October 21 involving old wallets retired after a $44 million breach in July 2025. It said it absorbed the loss and that customer balances, active wallets and trading were not affected. It said it noticed unusual activity on October 21 but found irregular fund movements the next day, and admitted: "We could have been more proactive."

Investigator Darcy identified transfers of about 15.99 million USDT on the Tron network. Bitquery identified 40 affected addresses and traced about $9.63 million through intermediary wallets to deposit addresses tied to OKX, Binance and Gate within 18 hours of the main transfer, crypto.news reported. Tether froze 2,212,850 USDT across nine addresses, TokenPost reported.

CoinDCX has not said when the sweeping service stopped, whether any funds were recovered or who received them. It said it will strengthen monitoring of older wallet systems.