CoinDCX USDT Hack: $44M Stolen, Engineer Arrested, Bounty
On July 19, the CoinDCX USDT hack resulted in the theft of $44 million via six internal wallets after a test transfer. Attackers exploited a targeted social engineering attack against senior engineer Rahul Agarwal, compromising his work laptop with malware to capture login credentials.
Bengaluru cybercrime officers arrested Agarwal on July 26, accusing him of collusion and receiving $17,000 and suspicious files over WhatsApp. No customer funds were lost; the breach affected only operational liquidity accounts. In response, CoinDCX launched a recovery bounty offering 25% of any reclaimed funds, up to $11 million. This CoinDCX USDT hack underscores growing security risks at centralized exchanges and the need for enhanced protocols.
Neutral
The incident involves internal liquidity wallets and did not affect customer holdings or the USDT peg. While it raises broader concerns about exchange security and could dent confidence in centralized platforms, it has minimal direct impact on USDT’s market price. Traders are unlikely to adjust positions based solely on this breach, making the short-term and long-term price outlook for USDT essentially unchanged.