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CoinDCX Employee Arrested Over $44M Crypto Hack in India
Bengaluru City police have arrested Rahul Agarwal, a software engineer at CoinDCX, in connection with the recent $44 million hack that hit the exchange on July 19, according to The Times of India. The arrest comes after a complaint was filed by Neblio Technologies, which operates CoinDCX.
Agarwal’s login credentials were allegedly compromised by hackers, who then accessed the company’s internal servers. Neblio determined that this breach occurred through Agarwal’s work-issued laptop, which granted hackers entry into CoinDCX’s systems. Authorities seized his laptop for forensic analysis to trace the malware and identify the attackers.
According to police, Agarwal denied any involvement in the theft but admitted to working on four private projects part-time while still employed at CoinDCX. The authorities have expressed concern that this extracurricular work may have exposed his credentials to external risks.
In response to the hack, CoinDCX referred media queries to a post by its co-founder and CEO, Sumit Gupta. He characterized the incident as a “sophisticated social engineering attack” aimed at exploiting employee access. Gupta urged people to avoid speculation that could affect the ongoing probe, while emphasizing that the company is fully cooperating with authorities.
Details of the $44 million exploit and timeline indicate that hackers first breached CoinDCX’s system during the night of July 19, transferring 1 USDT to a test wallet. Hours later, they executed a larger theft, siphoning $44 million to six separate wallets. Police said that hackers tricked Agarwal into installing malware on his office laptop, which facilitated server access and enabled unauthorized control over CoinDCX’s internal account linked to liquidity provisions with another exchange.
Despite the breach, Gupta clarified in his post that no user funds were affected, as the breach targeted internal operational accounts only.
Source: coinchapter.com
