ZachXBT Urges Users to Withdraw Funds From CoinDCX After $16 Million Loss Dispute

ZachXBT urges users to withdraw funds from CoinDCX following a dispute over reported $16 million operational losses.

Blockchain investigator ZachXBT has urged users to withdraw their funds from Indian cryptocurrency exchange CoinDCX following a dispute over a reported $16 million loss that the platform initially denied was linked to compromised wallets. The exchange later acknowledged operational losses, saying it had absorbed the impact and that users' funds remained safe.

The dispute centers on conflicting statements about the security of CoinDCX's wallets and the handling of addresses allegedly affected by a compromise. According to Coin Bureau, CoinDCX's co-founder had previously said the wallets were "not breached" and urged people not to "spread rumours."

ZachXBT subsequently challenged that account, claiming that one of the addresses CoinDCX had described as old was still forwarding user deposits to the exchange's current hot wallet as recently as May 2026. The claim raised questions about the explanation given for the addresses and their connection to the platform's active deposit infrastructure.

CoinDCX Acknowledges Operational Losses

Hours after the dispute intensified, CoinDCX acknowledged that a failed sweeping process involving the compromised addresses had resulted in what it described as "operational losses." In cryptocurrency operations, sweeping generally refers to moving funds from individual addresses into a designated wallet. The exchange attributed the reported losses to a failure in that process.

CoinDCX said it had absorbed the losses and maintained that users' funds "remain completely safe." That assurance contrasts with ZachXBT's public recommendation that users withdraw all funds from the exchange. The available statements do not establish that customer balances were lost, but they show a clear disagreement over the incident and the credibility of the exchange's initial explanation.

ZachXBT also sharply criticized the exchange's founders, saying they had "straight up lied or are negligently incompetent." The accusation reflects the investigator's assessment of the conflicting statements; it is not, by itself, independent proof of deliberate deception or negligence.

Previous $44 Million CoinDCX Hack

The latest dispute follows a separate security incident in July 2025, when CoinDCX was hacked for $44 million, according to Coin Bureau. The earlier incident provides important context for renewed scrutiny of the exchange's wallet security and its handling of the more recent reported losses.

The figures refer to two reported incidents: the $44 million hack in July 2025 and the $16 million loss at the center of the current dispute. The source does not establish that the amounts represent the same incident or that the later operational losses were directly part of the 2025 hack.

CoinDCX's position is that it absorbed the operational losses and that customer funds remain safe, while ZachXBT has advised users to withdraw their assets. The disagreement centers on the handling of compromised addresses, the failed sweeping process and the exchange's earlier claim that the wallets had not been breached.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.