CoinDCX says failed wallet sweep caused $15.99M loss

CoinDCX says a failed automated process allowed deposits to collect in retired wallet addresses, resulting in a loss of 15.99 million USDT that the cryptocurrency exchange absorbed. The company said customer balances and its active wallets and trading systems were unaffected. The deposits continued arriving at addresses that CoinDCX had stopped using after a security breach in July 2025. The exchange said some users kept sending funds to the old addresses despite instructions to use updated ones. An automated service intended to transfer incoming deposits from those addresses to the company’s primary wallets stopped working for an unspecified period. CoinDCX said it covered the loss itself and credited the deposits to customers, rather than passing the shortfall on to them. It said customer assets held in segregated cold wallets remained protected, and that active wallets, trading systems, and customer balances were not affected. The company has not publicly specified how long the service was down or precisely how the funds were lost. Blockchain analytics firm Bitquery traced 15.99 million USDT across 40 CoinDCX-related addresses on the TRON network. It identified one address...