ZachXBT urges CoinDCX users to withdraw funds after $16 million wallet dispute

Blockchain investigator ZachXBT has told CoinDCX users to “withdraw all funds,” saying the exchange’s founders mishandled a reported $16 million incident and were not transparent about what happened. For PSPs and high-risk operators, the useful part is not the drama; it is the sequence of denial, partial disclosure, and wallet forensics around an exchange incident.

1. On October 21, approximately $15.99 million in Tether (USDT) was tracked moving from a wallet associated with CoinDCX and into deposit addresses linked to other exchanges, including Binance. The case quickly became a public dispute over whether this was a theft, a compromise, or an operational issue tied to an older wallet.
2. In a post on X on October 22, 2026, ZachXBT accused CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal of first denying the reported loss and later acknowledging an operational issue involving an old wallet. He wrote: “Withdraw all funds from CoinDCX if you value your assets.”
3. Gupta said the relevant addresses were old and had been compromised during CoinDCX’s July 2025 security incident. ZachXBT pushed back, saying the wallet identified by an address beginning with “TQKJQ” stayed active for about 10 months after that incident and continued receiving user deposits and forwarding funds to CoinDCX’s current public hot wallet as recently as April and May 2026.
4. According to ZachXBT’s investigation, roughly $15.8 million in user deposits was properly accounted for during that period, while $15.8 million in user deposits was unaccounted for by CoinDCX’s team. He also said the address swept user deposits and received gas in April and May 2026.
5. CoinDCX denied the allegations, with Gupta saying the wallet had been compromised in July 2025 but that hackers continued to use it afterwards, which caused a false alarm. ZachXBT said the real issue was the initial public and private denial, and he compared CoinDCX with WazirX and BitBNS, two other Indian crypto exchanges that have faced security-related controversies.