Sumit Gupta, CEO, CoinDCX via Deccan HeraldTL;DR
- $44M Security Breach: CoinDCX suffered a major server hack in July 2024, but customer funds were reportedly safe.
- Recovery Efforts: The exchange launched a bounty program and collaborated with law enforcement to trace stolen assets.
- Acquisition Buzz: Reports in July 2025 claimed Coinbase was in advanced talks to acquire CoinDCX for under $1B.
- Official Response: CoinDCX CEO publicly denied sale rumors, while Coinbase continues expanding its India footprint.
In the fast-moving world of cryptocurrency, a month can feel like a year. For CoinDCX — India’s largest crypto exchange — the past few weeks have been nothing short of a rollercoaster. From a $44 million security breach that shook investor confidence to swirling acquisition rumours involving US-based giant Coinbase, the company has been at the center of the country’s crypto conversation.
While CoinDCX’s leadership insists it is “super focused” on India and not for sale, the speculation has raised important questions: Could a global player like Coinbase gain a foothold in India by acquiring its largest exchange? And how does a massive hack fit into that equation?
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The Rumour That Caught the Market’s Attention
In July, Mint reported that Coinbase was in advanced negotiations to acquire CoinDCX at a valuation of under $1 billion — a sharp drop from CoinDCX’s $2.2 billion peak valuation in 2021. The report cited two unnamed sources familiar with the matter, who claimed Coinbase already holds stakes in both CoinDCX and rival CoinSwitch.
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For Coinbase, the move would align with its March 2025 registration with India’s Financial Intelligence Unit (FIU) — widely seen as preparation for a retail trading launch in the country.
The Quick Denial
The excitement didn’t last long. Within hours of the Mint article’s publication, CoinDCX CEO Sumit Gupta took to X (formerly Twitter) to quash the speculation:
“Ignore the rumours! CoinDCX is ‘super focused’ on building for India’s crypto story and not up for sale! Will share more later but just wanted to clarify this upfront!” said Gupta on X
On the other hand, Coinbase, in a statement to Cointelegraph, offered a characteristically guarded response:
“We have a bold mission to increase economic freedom in the world, and are constantly exploring opportunities around the world to build, buy, partner, and invest to accelerate our roadmap.”
The $44 Million Hack That Preceded It All
The timing of these rumours is hard to ignore. Just days earlier, on July 19, 2024, CoinDCX confirmed it had suffered a $44.2 million breach targeting an internal operational wallet used for liquidity provisioning on a partner exchange.
In a detailed update on X, Gupta explained that the breach was caused by a “sophisticated server hack,” but emphasized that no customer funds were touched:
“Today, one of our internal operational accounts, used only for liquidity provisioning on a partner exchange, was compromised due to a sophisticated server breach. I confirm that the CoinDCX wallets used to store customer assets are not impacted and are completely safe.”
The stolen funds were moved through Tornado Cash, a privacy-focused crypto mixer, and then across Solana and Ethereum blockchains — making recovery efforts more challenging.
Damage Control and Recovery
CoinDCX moved quickly to contain the fallout:
- The compromised wallet was isolated.
- Related Web3 operations were suspended.
- A recovery bounty program was launched, offering up to 25% of any recovered funds to white-hat hackers.
Co-founder Neeraj Khandelwal confirmed the losses would be absorbed from the company’s reserves:
“The total amount lost was ~$44Mn out of our treasury assets. CoinDCX Treasury will be bearing these losses. Our first and foremost objective throughout the day has been to secure assets.”
A History of Hacks in India’s Crypto Scene
This wasn’t the first major breach to hit India’s crypto industry. In July 2023, WazirX — another leading exchange — suffered a $235 million hack. The repeated incidents highlight the security vulnerabilities in India’s fast-growing but regulation-light digital asset sector.
Coinbase’s CoinDCX Takeover: Possible Outlook for India’s Crypto Market
India is home to one of the world’s largest populations of crypto users, despite a complicated regulatory environment and a heavy tax regime on digital asset trading.
For Coinbase, acquiring CoinDCX would provide:
- Instant market entry with an existing user base.
- Brand recognition in a market where trust is critical.
- A ready local compliance framework, given CoinDCX’s FIU registration and domestic operations.
But the hack changes the risk equation. While CoinDCX’s swift containment reassured many, security lapses can impact valuation and investor confidence — potentially making the exchange a more attractive acquisition target at a discount.
Crypto Industry’s Mixed Reaction
Crypto analysts are split. Some see a potential acquisition as a win-win, while others warn that global takeovers could dilute India’s control over its own crypto narrative.
“Coinbase could bring in global best practices in security and compliance,” one blockchain researcher told LAFFAZ. “But there’s also the risk of strategic dependence on foreign entities in a sector that’s still finding its regulatory footing in India.”
Where Things Stand Now
As of mid-August 2025, there’s no official confirmation of any acquisition talks. CoinDCX continues to focus on rebuilding its reserves and user trust post-hack, while Coinbase keeps expanding its international portfolio — including acquisitions of Deribit and Liquifi earlier this year.
Whether the rumour was a brief market distraction or a glimpse into behind-the-scenes negotiations, one thing is clear: the combination of security, regulation, and global investment will continue to shape India’s crypto future.
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