Coinbase in Talks to Acquire CoinDCX Amid USD44M Hack Fallout
A forensic report cited backend credential compromise, overreliance on hot wallets, and lack of red-teaming as key vulnerabilities
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US-based crypto giant Coinbase is in advanced discussions to acquire Indian exchange CoinDCX at a valuation below USD1 billion, Mint reported. This marks a steep fall from CoinDCX’s USD2.2 billion valuation in 2021 and follows a USD44 million security breach disclosed on July 19.
Sources told Mint that Coinbase, already an investor in CoinDCX and rival CoinSwitch, views this as a strategic bet on India’s maturing crypto market. A potential Plan B includes merging Coinbase’s stakes in both platforms, though CoinSwitch denied any such talks.
CoinDCX faced criticism for delaying its breach disclosure by nearly 17 hours. A forensic report cited backend credential compromise, overreliance on hot wallets, and lack of red-teaming as key vulnerabilities. The company launched a USD11 million bounty program to recover stolen funds.
CoinDCX’s FY24 profits were largely driven by related-party transactions with overseas entities. Excluding these, the firm would have posted losses, Mint reported. Experts also flagged its self-scoped reserve audits and high hot wallet exposure of 28 per cent versus a global 5 per cent benchmark.
As Coinbase prepares to launch retail operations in India, the deal could reshape the country’s crypto landscape.
US-based crypto giant Coinbase is in advanced discussions to acquire Indian exchange CoinDCX at a valuation below USD1 billion, Mint reported. This marks a steep fall from CoinDCX’s USD2.2 billion valuation in 2021 and follows a USD44 million security breach disclosed on July 19.
Sources told Mint that Coinbase, already an investor in CoinDCX and rival CoinSwitch, views this as a strategic bet on India’s maturing crypto market. A potential Plan B includes merging Coinbase’s stakes in both platforms, though CoinSwitch denied any such talks.
CoinDCX faced criticism for delaying its breach disclosure by nearly 17 hours. A forensic report cited backend credential compromise, overreliance on hot wallets, and lack of red-teaming as key vulnerabilities. The company launched a USD11 million bounty program to recover stolen funds.
CoinDCX’s FY24 profits were largely driven by related-party transactions with overseas entities. Excluding these, the firm would have posted losses, Mint reported. Experts also flagged its self-scoped reserve audits and high hot wallet exposure of 28 per cent versus a global 5 per cent benchmark.
As Coinbase prepares to launch retail operations in India, the deal could reshape the country’s crypto landscape.
