CoinDCX Dismisses Acquisition Rumors Amid Security Breach

By: Eva Baxter

In recent developments, Indian cryptocurrency exchange CoinDCX has strongly refuted claims of acquisition discussions with the prominent U.S.-based crypto trading platform, Coinbase. The denials surfaced following reports alleging that Coinbase was in 'advanced discussions' to acquire CoinDCX, inciting widespread speculation within the industry. The rumors were primarily fueled by a report from an Indian news outlet, which suggested a valuation close to a billion dollars, although sources and specifics of the deal remained undisclosed.

Sumit Gupta, the CEO of CoinDCX, publicly addressed the speculation, emphatically denying any ongoing or planned sales discussions with Coinbase. Through a series of posts on social media platform X, formerly Twitter, Gupta affirmed CoinDCX's commitment to expanding its presence and operations within India, indicating that the company is heavily focused on contributing to India’s burgeoning crypto sector. Mridul Gupta, a co-founder at CoinDCX, echoed these sentiments, reinforcing that the company is in fact looking to grow its workforce in a bid to fortify its operations post the previous security breach.

The reports of an acquisition came on the heels of a significant security breach at CoinDCX, where approximately $44 million were illicitly drained, allegedly orchestrated by the Lazarus Group, a hacking group associated with North Korea. According to findings from blockchain analytics firm Cyvers, the exploit involved tactics such as exploiting API configurations and leveraging cross-chain technologies to obscure the movement of the stolen funds. In response to this breach, CoinDCX announced a reward program to incentivize recovery efforts, offering up to 25% of the recuperated assets to external cybersecurity professionals and blockchain experts.

Despite these challenges, CoinDCX remains one of the dominant digital asset platforms in India, managing substantial asset volumes and maintaining significant daily trading activities. Coinbase, having previously curtailed its Indian operations, re-entered the market earlier this year after a regulatory nod, aiming to strategically expand its footprint in the Indian crypto scene. However, recent denial statements from CoinDCX suggest that any potential acquisition talks remain speculative without official validation from either party involved.