ZachXBT Alleges CoinDCX Failed to Track $7.8 Million in User Funds

The prominent on-chain investigator known as ZachXBT has raised significant concerns regarding the security and accounting practices of CoinDCX, one of India’s leading cryptocurrency exchanges. According to recent findings, approximately $7.8 million in user deposits may be unaccounted for due to the continued use of an address linked to a historical security breach. While the exchange maintains that all funds are secure, the discrepancy highlights ongoing challenges in asset management following platform exploits.

Discrepancies in Wallet Activity and Fund Tracking

The investigation centers on the deposit address TQKJQ, which was reportedly compromised during a security incident in July 2025. ZachXBT alleges that despite the breach, a liquidity provider (LP) continued to utilize the address for nearly ten months. Data indicates that as late as April and May 2026, this specific address was still aggregating user deposits and funneling them into CoinDCX's current public hot wallet while receiving gas fees for transaction processing.

• The disputed amount totals roughly 7.8 million USD.
• Transactions were observed 10 months after the initial security incident.
• Deposits were allegedly moved from the compromised address to the active hot wallet.

CoinDCX Response to Security Allegations

In response to the claims, CoinDCX issued a statement dismissing the investigator's findings as misleading. The exchange clarified that the transactions in question involve legacy wallet addresses that were originally created in January 2025. While acknowledging the compromise of these addresses in July of the previous year, the platform's management asserts that the movements do not represent a loss of capital or a lack of oversight.

User funds remain safe. The claims are misleading as they pertain to old wallet infrastructure that was already identified following the 2025 incident.

The exchange maintains that its internal monitoring systems are robust, though the investigator argues that the flow of funds through compromised infrastructure suggests a lack of comprehensive tracking for specific user assets.

As the cryptocurrency industry faces increasing scrutiny from regulators and users alike, the clarity of on-chain accounting remains a critical benchmark for exchange reliability. The dispute between ZachXBT and CoinDCX underscores the complexities of managing digital asset security and the long-term repercussions of wallet compromises on the TRON and Ethereum blockchains. For now, users are advised to monitor official communication channels for further updates regarding the status of legacy deposit addresses.