CoinDCX is offering a 25 percent bounty on any funds recovered from a recent $44 million (Rs 378 crore) hack — but the damage may already be done for investor confidence. The breach, which comes just a year after the $234.9 million theft at WazirX, has once again exposed the vulnerabilities of leading Indian crypto exchanges and raised urgent questions for investors: are web3 assets worth the risk?
The hack, confirmed by CoinDCX, triggered 31,462 withdrawal requests within 24 hours of the news breaking. While the platform claims that 98 percent of those requests have already been processed and that all user assets are stored in segregated cold wallets, the rush underscores a sharp dip in user trust.
“Customer funds are 100 percent safe,” said CoinDCX co-founder Sumit Gupta, adding that the loss was absorbed entirely from the company’s reserves. But investor sentiment appears shaken nonetheless.
In a bid to recover the stolen funds, CoinDCX has announced a recovery bounty programme, promising 25 percent of any retrieved amount to individuals or entities who can help trace the hackers. “More than recovering the stolen funds, what is important is to catch the attackers,” Gupta posted on X.
Crypto prices remain strong — Bitcoin has risen about 14 percent in the past month to reach $1,18,000 — but experts say that doesn’t reduce the risk that investors are taking on.
“Security lapses like these don’t necessarily discredit the asset class,” said Edul Patel, CEO and co-founder of Mudrex, a crypto investment platform. “But investors must evaluate whether the platforms they use prioritise safety, including measures like cold wallets, internal treasuries, and segregation of user assets.”
Patel added that exchanges like CoinDCX and ByBit have shown accountability by absorbing losses and maintaining operations during crises. Still, caution is warranted.
Others are more blunt about the dangers.
“This is a classic case of investors chasing unregulated, volatile assets in search of quick returns,” said Preeti Zende of founder of Apna Dhan Financial Services. “Cryptocurrencies can swing dramatically in value, and if something goes wrong, there’s no guarantee that investors will recover anything.”
Zende advised staying away from such unstable instruments, pointing to recent years of hacks, scams, and severe volatility. “If you want long-term wealth, stick to time-tested, regulated products. Don’t burn your fingers trying to ride a trend,” she said.
CoinDCX may have cushioned the immediate blow by absorbing losses and reassuring customers, but the larger issue persists. For investors drawn by the promise of big returns, the question remains: is the risk worth it?