CoinDCX Staff Member Held in $44 Million Login Credential Hack
In a major security breach, a staff member of Indian crypto exchange CoinDCX has been detained in connection with a $44 million cryptocurrency heist. The incident reportedly occurred after hackers gained unauthorised access to the platform by exploiting internal login credentials.
According to early reports, the attackers leveraged the employee’s access to bypass security systems and transfer funds illicitly. Authorities are investigating the depth of the insider’s involvement and how the hackers obtained sensitive login information.
CoinDCX has yet to release an official statement but is said to be cooperating with law enforcement agencies to recover the stolen funds and strengthen its internal cybersecurity measures.
This breach raises renewed concerns about insider threats and the importance of strict access control and credential management in the crypto industry.
The employee, Rahul Agarwal, works as a software engineer for the exchange.
The arrest comes after CoinDCX’s parent firm, Neblio Technologies, lodged a formal complaint over hackers exploiting Agarwal’s login credentials.
CoinDCX suffered a major security breach on July 19 that compromised an internal account used to provide liquidity to customers.
As reported earlier, cybersecurity experts from Cyvers found that the exploit is linked to the infamous North Korean Lazarus Group. They said that the hack pattern mirrors another Indian crypto exchange WazirX’s $234 million crypto hack last year.
CoinDCX Employee Involved in Hack Says He Took Freelance Task After German Call
CoinDCX Staffer Under Investigation in $44M Hack Linked to Compromised Company Laptop
A major security breach at CoinDCX has led to the detention of a company employee, Agarwal, in connection with a $44 million crypto theft. According to Hardeep Singh, Neblio’s Vice President for Public Policy, Agarwal was a permanent employee who was found using his company-issued laptop for freelance work.
The breach came to light when an unauthorised transaction of 1 USDT was detected at 2:37 a.m. on July 19. Hours later, around 9:40 a.m., $44 million was syphoned off and transferred to six different wallets, according to a police statement quoting Singh.
Internal investigations revealed that Agarwal’s laptop had been compromised, granting the hacker access to CoinDCX’s systems. During police questioning, Agarwal admitted to “moonlighting”—using his work laptop for private freelance projects. He mentioned receiving a WhatsApp call from a German number, claiming that files had been sent for completion. He suspects that one of the files might have contained malicious code used to breach the system.
“He claimed he was unaware of the theft until the company summoned him,” the police said.
Authorities have registered a case under multiple sections of the Indian Information Technology Act. The investigation is ongoing.
Read more:-India’s Finance Ministry Rules Out Crypto Tax Changes and Bitcoin ETF Authorization
CoinDCX Employee Received $17K From Hackers
Investigators have revealed that approximately $17,131 was transferred to the bank account of a CoinDCX employee from an unidentified source. The transaction has raised further questions amid the ongoing investigation into the $44 million security breach at the crypto exchange.
According to the police First Information Report (FIR), the employee, identified as Agarwal, stated that the amount was earned through freelance work conducted over the past year. Authorities are currently verifying the legitimacy of this claim.
This development follows widespread rumors about U.S.-based crypto giant Coinbase acquiring CoinDCX. A local report suggested the deal would value CoinDCX at under $900 million. However, CoinDCX CEO Sumit Gupta dismissed the speculation, labeling it as mere “rumors.”
“We are super focused on building for India’s crypto story,” Gupta stated, firmly denying any acquisition plans.
Disclaimer :- All content on this website is for informational and educational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile—always do your own research before making any investment decisions. We are not responsible for any financial losses arising from the use of information on this site.