CoinDCX Refutes Acquisition Rumors Amid Security Breach

CoinDCX Denies Acquisition Speculation

Indian cryptocurrency exchange CoinDCX has firmly dismissed reports suggesting that Coinbase is in talks to acquire it for $1 billion, labeling the claims as baseless rumors. The platform’s founder and CEO, Sumit Gupta, emphasized in a social media post that CoinDCX remains “super focused” on expanding India’s crypto market and is not for sale. The denial follows media speculation by Mint, which cited anonymous sources stating that Coinbase was exploring a potential purchase. A Coinbase spokesperson declined to comment on the rumors but reiterated the company’s broader strategy of “exploring opportunities” for global growth, including acquisitions, partnerships, and product development.

Security Breach and Recovery Efforts

The speculation emerged amid Coinbase’s aggressive expansion in India. The firm has already secured stakes in major Indian crypto platforms, including CoinDCX and CoinSwitch Kuber, while registering with the country’s Financial Intelligence Unit in March 2024. Additionally, Coinbase’s recent high-profile acquisitions—such as the $2.9 billion purchase of derivatives exchange Deribit in May and the July acquisition of token management platform LiquiFi—fueled assumptions about its interest in acquiring CoinDCX. The Indian exchange, with a user base exceeding 14 million, has long been a strategic target due to its market penetration and growth potential.

Challenges Faced by Crypto Platforms

The rumors gained further traction amid a security breach at CoinDCX on July 18, when hackers exploited a partner platform’s liquidity account to steal $44.2 million. Despite the incident, the exchange assured users their funds were unaffected and launched a reward program offering 25% of recovered cryptocurrency to incentivize white-hat hackers to assist in tracking the stolen assets. Management also emphasized the platform’s financial stability, citing annual revenue of $132 million and secured corporate reserves, as well as support from investors and recovery partners such as Zero Shadow, Wormhole, and the Solana Foundation.