CoinDCX Confirms $15.99M Loss From Deprecated Wallets
CoinDCX confirmed a 15.99 million USDT loss after funds were drained from deprecated TRON wallets on Oct. 21. The exchange said the affected wallet infrastructure had been compromised in a 2025 security incident and later retired. An automated deposit-sweeping service had failed, leaving customer deposits in the old wallets even as CoinDCX credited customers’ accounts. The company says it absorbed the loss and that customer balances, active wallets, trading and withdrawals were unaffected.
Blockchain analytics firm Bitquery traced activity across 40 CoinDCX-linked wallets, reporting that about 15.82 million USDT came from a single address. Roughly 9.63 million USDT later reached addresses associated with other exchanges, while Tether reportedly froze about 2.21 million USDT across nine wallets. CoinDCX initially described the activity as a false alarm before confirming the loss. It has not disclosed why the sweeping service failed or confirmed recovery of the frozen funds. Traders will be watching for further details on the incident and evidence that CoinDCX can maintain custody and meet withdrawals.
Neutral
The incident concerns CoinDCX’s custody and wallet operations, not a reported problem with USDT’s peg or Tether’s ability to redeem tokens. The company says it absorbed the loss and that customer balances and withdrawals were unaffected, limiting the direct case for a sustained USDT price move. Short term, the news could prompt traders to monitor USDT liquidity and exchange spreads, or briefly favor moving funds away from affected platforms. However, those reactions would mainly concern exchange and custody risk rather than USDT’s underlying market price. Longer term, further evidence of recovery, sound reserves and reliable withdrawals could reassure users; any indication of broader operational exposure could weaken confidence. On the information available, the expected direct price impact on USDT is neutral.