An outflow of nearly $16 million from Indian crypto exchange CoinDCX has sparked an open clash between exchange management and blockchain investigators. Suspicious movements on the exchange’s deposit wallet included the transfer of 15.99 million USDT and 5,783.81 TRX on the TRON network. CoinDCX quickly issued a denial, maintaining that the platform was not facing a new security breach.
The asset movement first came to light following findings by on-chain researcher Darcy. On October 21 at 23:35 UTC+8, Darcy detected the transfer of 15.819 million USDT from a CoinDCX deposit wallet to an external address. Following the initial transfer, the USDT balance was routed further into various accounts across three separate exchanges: Binance, OKX, and Gate.
Recycling Claims from Exchange Leadership
Responding to Darcy’s findings, CoinDCX co-founder and CEO Sumit Gupta stated that all customer funds were safe. Gupta denied any new breach in the exchange’s systems, claiming the sender address was an old wallet created in January 2025. According to Gupta, the address had already been compromised during a previous hack in July 2025.
Gupta argued that the previous hacker likely recycled the obsolete wallet, triggering false alarms among market observers. To reinforce his defense, the CEO pointed to the exchange’s internal proof of reserves data to show that CoinDCX’s cash reserves and deposit liabilities were not facing any deficit.
TQKJQ Address Remained in Active Use
On-chain investigator ZachXBT quickly refuted the exchange management’s defense. By tracking TRON network ledger data, ZachXBT revealed that the deposit wallet labeled TQKJQ was still actively utilized by liquidity providers up to 10 months after the July 2025 hack occurred.
ZachXBT presented direct transaction records to substantiate his rebuttal. The TQKJQ address was shown to still be receiving balance deposits and transaction fee transfers throughout April and May 2026. Rather than ceasing operations, the address then routed incoming assets directly into CoinDCX’s active hot wallet.
Questioned Reconciliation Records
Based on the trail of funds still connected to the exchange’s hot wallet, ZachXBT alleged that approximately $15.8 million in customer deposits was not clearly accounted for in CoinDCX’s internal reconciliation. The finding undermines management’s claim that the sending address was merely an abandoned leftover wallet from the previous year.
For customers storing assets on centralized exchanges, the contradiction between management statements and on-chain transaction data serves as a stark reminder of internal accounting risks. When an exchange’s proof of reserves clashes with fund flows publicly visible on block explorers, transparent wallet management remains the only real assurance for investors.
Reported via crypto.news.
Also read: Hyperbridge Breached for 1 Billion DOT in Single Attack - Losses Uncertain but Price Pressure Looms
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
