Old wallet addresses trap CoinDCX users, triggering potential losses

Indian crypto exchange CoinDCX said it absorbed operational losses after a process for collecting deposits from old wallet addresses failed, adding a new explanation on Oct. 22, hours after denying a fresh breach.In a 12:47 p.m. BST update from CoinDCX, the exchange said some users had continued sending crypto to addresses deprecated after its July 2025 security incident. It said it credited affected customer deposit wallets, while active wallets remained unaffected.The statement followed an allegation by ZachXBT that $15.8 million in user deposits was unaccounted for. CoinDCX did not give a loss amount in its update or specify how long the failed process had lasted.According to CoinDCX, the company had retired the addresses from use, but some users kept depositing despite earlier warnings.Its sweeping process was supposed to regularly collect those deposits so the company could account for and secure them, but it only discovered the failure on the morning of Oct. 22.From denial to an explanation of lossesAt 9:10 a.m. BST, CEO Sumit Gupta said CoinDCX wallets had not been breached. He described the flagged addresses as created in January 2025 and compromised in the July 2025 incide...