The breach highlights urgent need for stronger security and insider threat monitoring in India’s crypto market.
A major security breach has rocked India’s top crypto exchange, CoinDCX. According to Cointelegraph, the police have arrested Rahul Agarwal, a software engineer at the company, for allegedly helping hackers steal $44 million in digital assets.
The cyberattack was not an ordinary hack. Investigators say Agarwal, who worked as a software engineer at CoinDCX, secretly added harmful software into the company’s system. This let hackers slip in through the back without being noticed and slowly take out money over a few days.
The stolen crypto, worth nearly ₹370 crore, disappeared into unknown wallets. Hackers used mixers and privacy tools to make the trail harder to follow.
The scam came to light during a routine system check. CoinDCX’s tech team noticed unusual activity in their wallet infrastructure. A deeper audit showed suspicious API calls and hidden code that didn’t belong. When they traced the code, it led straight back to Agarwal.
The police then stepped in. Further digging revealed messages and financial transactions between Agarwal and external hackers. Authorities believe this was a well-planned attack, not a random breach.
CoinDCX quickly released a statement after the arrest. They said customer assets were not affected and that the stolen funds came from the company’s own reserves. The company also promised to strengthen its internal systems and fully cooperate with law enforcement.
“We are treating this matter with the highest seriousness,” a CoinDCX spokesperson said. “We’re working closely with cybercrime officials to recover the funds and ensure something like this never happens again.”
The incident has caused a stir across India’s growing crypto space. Users are worried about security, especially when trusted insiders are involved.
“This is a big wake-up call,” said Anil Kumar, a blockchain security expert. “Crypto firms need to focus not only on outside hackers but also on who has access inside their own teams.”
Other experts are urging exchanges to set up stronger checks and balances. Some have suggested regular employee audits, access controls, and better internal reporting systems.
The police are still investigating the case. They are trying to find out who else was involved and where the money went. They suspect Agarwal did not act alone. International cybercrime units and blockchain tracking firms are now helping in the case.
Meanwhile, CoinDCX says it is doing everything it can to recover the stolen crypto. The exchange has also reassured users that their funds are safe.
This incident shows us that the biggest risks can come from within. As India’s crypto world grows, making sure everything stays safe is more important than ever.
Good security isn’t just about tech and passwords. It’s also about trust — trust in the people you work with and trust from the users who rely on you.
