Overview
- CoinDCX disclosed on Oct. 25 that about 15.99 million USDT moved out of retired Tron addresses on Oct. 21 and that the company will absorb the loss to cover affected user deposits.
- The exchange says the loss resulted when an internal sweeping service failed to move deposits from old addresses that had been decommissioned after a July 19, 2025 breach, allowing funds to accumulate there.
- Independent on-chain analytics traced roughly $9.63 million of the outflow toward deposit addresses at Binance, OKX and Gate.io, while Tether froze about $2.21 million tied to the transfers.
- CoinDCX says customer balances, active wallets, trading and withdrawals were not affected and that it credited users from internal reserves, though CEO Sumit Gupta initially dismissed early sleuthing as a false alarm.
- Key questions remain about when the sweeping service stopped, how external parties gained control of funds, and whether Indian regulators will open formal probes after this and last year’s roughly $44 million breach.