On July 19, attackers compromised a hot wallet after gaining server-level access to the internal account -- which was used for operational liquidity provisioning. 

"One of our internal operational accounts, used solely for liquidity provisioning on a partner exchange, was compromised due to a sophisticated server breach, leading to a financial exposure of approximately $44 million," CoinDCX informed in a blogpost.

However, affected infrastructure has been completely isolated very effectively and CoinDCX operations continue to run normally, the company claimed.

CoinDCX said that CERT-In has been informed and detailed forensics with two globally reputed security agencies are being carried out and "reports will be shared for public benefit."

It further added that the company will fully cover the loss using its treasury reserves -- and there will be no cost to customers.

The breach came to light only after well-known blockchain investigator ZachXBT exposed it on his Telegram channel.

ZachXBT tracked the hacker’s activity, revealing that the wallet used in the attack was initially funded through the crypto mixing service Tornado Cash. He also noted that part of the stolen funds was later moved from Solana to Ethereum.

"The incident was quickly contained by isolating the affected operational account. Since our operational accounts are segregated from customer wallets, the exposure is only limited to this specific account and is being fully absorbed by us - from our own treasury reserves," CoinDCX founder Sumit Gupta, said on micro-blogging platform X.