CoinDCX Offers $11 million Bounty in $44.2 million Crypto Hack Case

• Indian crypto exchange CoinDCX loses $44.2 million, with $15.8 million funneled through Tornado Cash to Ethereum.
• The company announces an $11 million Recovery Bounty to incentivize retrieval efforts.

On July 19, 2024, an attacker exploited an internal operational wallet at Indian cryptocurrency exchange CoinDCX, stealing $44.2 million. This wallet provided liquidity for partner exchanges; fortunately, the breach did not compromise customer funds stored in cold wallets. The attacker used Tornado Cash, a decentralized transaction mixer, to obscure fund movements and bridged $15.8 million of the stolen assets from Solana to Ethereum.

On July 19, blockchain security firm Cyvers Alerts and investigator ZachXBT reported suspicious fund activity approximately 17 hours before CoinDCX released an official statement. This delay sparked discussions about the cryptocurrency industry's approach to timely disclosure. Investigators have since tracked the stolen funds to multiple wallet addresses, including a primary Ethereum (0x) wallet and a Solana wallet, mobilizing blockchain forensics teams to conduct deeper investigations.

CoinDCX committed to covering the entire loss from its corporate treasury reserves, ensuring no customer funds are impacted. To counter future threats and recover stolen assets, the company engaged cybersecurity experts Sygnia, Halborn, and Seal911, alongside blockchain analytics teams. Furthermore, CoinDCX reported the breach to India's cybersecurity agency, CERT-In. The exchange reassures users that trading and INR withdrawal services remain fully operational.

To expedite recovery, CoinDCX launched a Recovery Bounty Program that offers a reward of up to 25% of recovered funds, capped at $11 million. The company invited ethical hackers and Web3 community experts to help identify the attackers and reclaim the assets. Looking ahead, CoinDCX will enhance its security infrastructure and launch a comprehensive bug bounty program to proactively address vulnerabilities.

According to data from CoinGecko on July 21, 2024, Ethereum (ETH) was trading at $3,454.03 as of 16:09 UTC, a price representing a 0.35% increase in 24-hour trading volume. Meanwhile, Solana (SOL) was also showing increased activity, priced at $165.78 with a 7.46% surge in its 24-hour trading volume.