CoinDCX Hack: $44 Million Loss

Key Takeaways

• Coinbase is in advanced talks to acquire India’s largest crypto exchange, CoinDCX.
• CoinDCX’s valuation has dropped below $1 billion following a $44 million security breach.

Coinbase is reportedly in advanced negotiations with CoinDCX, one of India’s largest crypto exchanges, regarding a potential acquisition that could enhance its position in this emerging market.

According to India’s Livemint, CoinDCX might be acquired for less than $1 billion, a significant drop from its peak valuation during the last bull run.

If confirmed, this acquisition would further extend Coinbase’s acquisition strategy this year. After acquiring Deribit for $2.9 billion, the company also purchased three crypto startups: Liquifi, Spindl, and Iron Fish.

CEO Brian Armstrong emphasized that Coinbase is actively seeking mergers and acquisitions and is prepared to invest more if suitable opportunities arise.

In March, the leading US exchange secured a license from India’s Financial Intelligence Unit, intending to re-enter the market after a brief setback due to regulatory challenges in 2022.

Discussions come as CoinDCX works to recover from a recent security breach that drained $44 million from its internal liquidity wallet earlier this month.

CEO Sumit Gupta assured that customer funds are unaffected, as they remain safely in cold storage. The company’s treasury will cover the losses, supported by enhanced security measures and recovery efforts.