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The exchange called it a “false alarm” — three days later, it admitted it had lost $16 million.

The facts: CoinDCX, India’s largest crypto exchange, confirmed on Oct. 25–26 (CoinDesk, TokenPost) that 15.99 million USDT had been lost from a retired wallet. An automated sweeping system that was supposed to move customer deposits failed, leaving funds to pile up in an old address that had been breached in July 2025 — where an attacker took them. CEO Sumit Gupta had called the initial reports a “false alarm” on Oct. 22. CoinDCX says it will fully cover the loss and that customer funds remain safe in separate cold wallets.

My take: The worrying part isn’t the amount — $16 million is relatively small for an exchange of that size — but the pattern: a retired wallet still receiving deposits, followed by an initial denial that turned out to be wrong. This is about the discipline of decommissioning old infrastructure, not the security of active wallets. And it’s the second incident after the $44 million hack in July 2025.

What I’m watching: whether there’s an independent audit of this incident, and whether Tether managed to freeze more than the $2.2 million it has reportedly already frozen.

How much do you trust an exchange’s “funds are safe” statement after its initial denial turns out to be wrong?

This is my analysis, not financial advice — always DYOR.

#KeamananCrypto #BursaCrypto $USDT