Exchange Announces Recovery Incentive Following Attack

Indian cryptocurrency platform CoinDCX has launched an unprecedented white hat bounty program after suffering a $44 million security breach last Friday. The initiative offers ethical hackers up to 25% of recovered funds - potentially $11 million - for assisting in tracing and retrieving stolen stablecoins.

Internal Systems Compromised

The attack targeted CoinDCX's liquidity provision accounts, with company CEO Sumit Gupta confirming the incident involved only corporate funds. "Our treasury has absorbed the impact," Gupta stated on social media platform X, emphasizing that customer assets remained secure throughout the incident.

——This isn't just about financial recovery—— Gupta noted. ——We're determined to identify the perpetrators to prevent future attacks across the industry——

Growing Trend of Exchange Exploits

The incident follows a pattern of centralized exchange vulnerabilities, coming one year after WazirX lost 【$230 million】 in India's second-largest crypto hack of 2024. Blockchain security expert Michael Pearl reveals these breaches represent 【65%】 of all Web3 losses last quarter, totaling nearly 【$500 million】 in stolen assets.

Security Experts Sound Alarm

Pearl's firm Cyvers advocates for advanced protective measures including real-time wallet monitoring. "Current solutions catch less than 1% of sophisticated attacks," he warned, recommending offchain transaction validation that could prevent 【99%】 of crypto theft attempts.

Industry-Wide Implications

The CoinDCX breach highlights persistent security challenges despite the crypto sector's 【$1.7 trillion】 market capitalization. As exchanges face increasing regulatory scrutiny, this bounty program sets a new precedent for collaborative security efforts between platforms and ethical hackers.

Interestingly, the attack methodology remains undisclosed, with investigators focusing on blockchain forensics to trace the stolen funds. The exchange maintains normal operations while implementing enhanced security protocols.