CoinDCX Launches Global Bounty, Offering 25% Reward to Track Down $44M Hacker

CoinDCX Launches Global Recovery Bounty After $44M Hack, Leading a New Era in Crypto Security

In a decisive step toward combating cybercrime in the cryptocurrency industry, Indian crypto exchange CoinDCX has announced the launch of its CoinDCX Recovery Bounty program following a severe hack that resulted in the theft of approximately $44 million from its reserves.

The initiative is designed to engage ethical hackers, blockchain investigators, and cybersecurity researchers worldwide to trace the stolen funds, identify those responsible, and assist in returning the assets to the platform. CoinDCX is offering up to 25% of any recovered funds as a reward under this program, making it one of the most aggressive bounty initiatives within the crypto sector.

“It’s About More Than Just Recovering Funds”

CoinDCX CEO Sumit Gupta emphasized that while recovering the stolen assets is important, the broader mission is to protect the crypto ecosystem by bringing the perpetrators to justice and preventing similar incidents across the industry.

“What matters more is making sure this never happens again, not just to us, but to anyone in crypto,” Gupta stated in an official communication to users.

The bounty is open to participants globally, reflecting a shift in how crypto platforms are responding to security breaches—by leveraging the transparency and reach of the blockchain community rather than operating behind closed doors.

Investigators with experience in blockchain forensics are encouraged to track suspicious wallet movements and supply actionable intelligence, a strategy that taps into the collective strength of the Web3 ecosystem.

Community and Partner Support Strengthens Efforts

The CoinDCX Recovery Bounty has already gained significant support from the Web3 industry. Leading ecosystem players such as Sygnia Labs, SuperteamIN, the Solana Foundation, Wormhole Foundation, and deBridge have joined forces with CoinDCX to track and analyze the stolen assets.

CoinDCX co-founder Neeraj Khandelwal highlighted the broader significance of the incident, stating:

“This is not just an attack on one company; it is an attack on the trust that underpins the crypto industry. The Recovery Bounty is our way of fighting back and showing unity across the global community.”

CoinDCX has also notified the Indian Computer Emergency Response Team (CERT-In) and is collaborating with legal experts to ensure that, should the attackers be identified, prosecution can follow. The company plans to release a public forensic report as the investigation progresses to maintain transparency with users and stakeholders.

Inside the $44 Million Hack

The breach occurred on July 19, 2025, when CoinDCX experienced a server compromise due to a phishing attack. An internal account used for liquidity trading across partner platforms was compromised, allowing attackers to steal approximately $44 million worth of cryptocurrency.

Initially, the attackers stole funds in Solana (SOL) and later moved the assets across various networks to obscure their tracks. The attackers utilized the Jupiter aggregator to convert SOL into Wrapped Ethereum (WETH) and then used the Wormhole Bridge to transfer the funds onto the Ethereum blockchain. Subsequently, Tornado Cash was employed to mix the funds and obfuscate the transaction history further.

At present, two Ethereum wallets associated with the stolen funds, holding around 4,400 ETH, are being actively monitored. These wallet addresses have been made public, and real-time tracking is possible via blockchain analytics platforms like Arkham Intelligence.

Assurance to Customers: No User Funds Impacted

Amid the turmoil, CoinDCX has been clear that no customer funds were affected by the hack. The stolen funds were taken from the platform’s operational reserves, which are kept entirely separate from customer assets. User funds continue to be secured in cold wallets, ensuring their safety during and after the breach.

“All trading, deposits, and INR withdrawals are functioning normally. We urge our community to remain calm and rely only on official updates for information,” Gupta reassured customers via CoinDCX’s official communication channels.

Turning Crisis Into Opportunity for Industry-Wide Reform

The launch of the CoinDCX Recovery Bounty marks a shift in the crypto industry’s response to security breaches. Rather than opting for a low-profile resolution, CoinDCX has chosen transparency, community collaboration, and public accountability.

This proactive approach could set a precedent for how crypto exchanges handle breaches, encouraging industry-wide adoption of community-powered recovery initiatives. By engaging the global blockchain community and ethical hackers in its recovery efforts, CoinDCX is fostering a culture of resilience and accountability within the crypto sector.

Industry Implications and Market Impact

The incident has also sparked discussions within the crypto community about the need for enhanced security practices, more robust phishing prevention systems, and increased collaboration between exchanges and blockchain analytics firms.

Experts suggest that the Recovery Bounty program may become a blueprint for future incidents across the industry, providing a pathway for the recovery of stolen funds while simultaneously deterring future attackers by showcasing the collective power of blockchain transparency.

The hack, while significant, has not dampened market confidence in CoinDCX or the broader crypto market. The exchange continues to operate seamlessly, and trading volumes remain stable. Analysts note that the swift and transparent response has helped preserve trust in CoinDCX and the crypto industry during a critical period of growth for India’s crypto sector.

The Road Ahead: Building a Safer Crypto Future

The CoinDCX Recovery Bounty signifies a bold step forward in how crypto platforms address security breaches. The move demonstrates that exchanges can balance business continuity with a commitment to accountability and transparency.

As the crypto industry matures, such initiatives are likely to gain traction, underscoring the importance of collective action in tackling cybercrime within the digital asset ecosystem.

CoinDCX’s approach also signals to malicious actors that the industry is prepared to pursue them relentlessly, utilizing the open and traceable nature of blockchain technology to ensure accountability.

“This is about protecting our users, our partners, and the integrity of the crypto ecosystem as a whole,” Gupta stated, emphasizing that CoinDCX will continue working with global partners and the blockchain community until the perpetrators are identified and the stolen funds are recovered.

As India’s crypto industry continues to expand, CoinDCX’s Recovery Bounty could serve as a model for other exchanges worldwide, illustrating the potential of transparency and collaboration in enhancing security within the fast-evolving digital finance landscape.

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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