CoinDCX Confirms $15.99M Loss After Funds Accumulated in Deprecated Wallets

CoinDCX confirmed on Oct. 25 that it absorbed a loss of 15.99 million USDT after an automated service meant to sweep deposits from wallet addresses failed, allowing funds to accumulate in infrastructure the exchange had deprecated. The company said the incident did not affect active customer-facing systems or customer deposit balances.

Failed sweeps left funds in deprecated wallets

In its Oct. 25 update, CoinDCX said deposits continued to build up because its automated sweeping service had failed. Sweeping services are used to move funds from deposit addresses into other wallet infrastructure.

The company said the 15.99 million USDT loss was absorbed by CoinDCX. Its account frames the event as an operational failure involving retired wallet infrastructure, rather than a compromise of the exchange’s active systems.

On-chain drain concentrated in one deposit address

The wallet activity occurred on Oct. 21. Blockchain-data firm Bitquery reported that about 15.99 million USDT was drained from 40 CoinDCX-linked TRON wallets.

About 15.82 million USDT of that amount originated from a single address associated with accumulated deposits, according to Bitquery. That concentration is consistent with CoinDCX’s subsequent explanation that deposits had been left in the deprecated infrastructure after the sweeping process stopped working.

Active systems and customer balances unaffected, CoinDCX says

CoinDCX said the affected wallet infrastructure had been compromised during its 2025 security incident and was deprecated afterward. The exchange maintained that its active wallets, trading systems and customer deposit balances were unaffected.

The statement distinguishes the retired infrastructure from the systems currently handling customer activity. CoinDCX did not in the update provide further details on the operational failure that prevented the automated sweeps.

Initial false-alarm response preceded confirmation

CoinDCX initially dismissed the wallet activity as a false alarm before later acknowledging the 15.99 million USDT loss, according to CoinDesk.

The later confirmation attributed the loss to the failed sweeping process and deprecated infrastructure, while the exchange said it had borne the financial impact itself.

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