Mumbai3 minutes ago
- Copy link
Hackers blew $ 44 million (about Rs 380 crore) from a large Crypto Exchange Coin DCX in India. The incident took place on Saturday (July 19), when hackers targeted an internal operational account of the company.
However, Coin DCX has said that customers’ funds are completely safe, and the company will compensate for its Treasury Reserve. The incident has re -exposed the risk and security threat of investment in cryptocurrency. In this story, you will know the dangers of investing in the current incident and crypto through question and answer …
Question 1: What is the incident of coin DCX hacking, what was the effect of it?
answer: Coin DCX is a major cryptocurrency exchange of India. On July 19, a ‘Sophisticated Server Breach’ was done, ie its data was cleverly accessed. Hackers targeted an internal operational account of the company, which was only used for liquidity provisioning on the partner exchange.
About $ 44 million was stolen in this attack. Coin DCX said that customers ‘funds are completely safe, as the affected account did not have customers’ money. The company has said that trading and withdrawal of rupees continue normally.
Question 2: How did this hacking happen and how did hackers transfer funds?
answer: In this hacking, hackers achieved unauthorized access to an operational account on Coin DCX’s partner exchange. According to Blockchain Analyst Jack XBT, hackers transformed stolen funds (USDC and USDT stabils) from Solana to Atherium blockchain.
The fund was rooted through Torneado Cash. Turnedo is a crypto mixer, in which it is difficult to trace transactions. Hackers initially funded their wallets with 1 Eth through Turnedado Cash.
The stolen funds were transferred to several phases (in a batch of 1,000-4,000 SOL) and finally merged at 4,443 eth (about 15.7 million $ 15.7 million) and 155,830 sols (about 27.6 million $ 27.6 million).
Question 3: What are the major threats of investment in cryptocurrency?
answer: Investment in cryptocurrency is full of risk-
- Cyber Security Risk: Currently, incidents such as the incident of Coin DCX and theft of $ 230 million (about ₹ 1983 crore) from Wazir X shows that Crypto exchange can be an easy target of hacking. Hackers often target weak servers, private keys or smart contracts.
- Market instability: Crypto prices are quite volatile. That is, it keeps decreasing rapidly. Major cryptocurrencies such as bitcoin and atherium are also seen in heavy ups and downs, causing damage to investors.
- Regulatory framework not: Clear rules for cryptocurrency in India have not yet been implemented. However, the government is working about this. Hopefully a crypto policy framework is applied soon. But uncertainty increases the risk for investors.
- Fraud and scam: Fake ICOS, Pongy Schemes, and Fishing attacks are common in Crypto Space. Investors can easily be a victim of deception.
- Wallet Security: If investors leave their crypto on the exchange, there is a risk of hacking. Cold wallets are safe, but losing private keys can disappear forever.
- Liquidity Risk: Liquidity means that you cannot withdraw as much money as you want. Some small cryptocurrency reduces liquidity, causing damage due to poor market conditions at the time of selling.
Question 4: What precautions should be taken before investing in Crypto?
answer: Before investing in Crypto, it is important to pay attention to many things like research and cold wallet-
- Research: Those who are reliable according to the exchange of exchange external and users according to the feedback should be invested. Check their security measures, such as cold wallet storage and multi-signature system before investment.
- Use of cold wallet: Do not leave your crypto on the exchange. Hardware can use wallets such as laser or treasury, they are more secure than hacking. Apart from this, keep 2fa enabled on your exchange and wallet accounts,
- Limit investment: Only invest as much as you are ready to lose, as the Crypto market is quite unstable.
- Avoid fishing: Beware of suspicious links, emails or messages that ask for your private keys or login information.
- Look at policy updates: Keep an eye on the crypto rules in India, as the policy changes can affect your investment.
- Diversification: Do not put all your funds in any one or exchange. Portfolio should be diversified to reduce the risk.
Question 6- Is cryptocurrency illegal in India?
Answer- Cryptocurrency is not illegal in India, but it is not even regulated. That is, in India you can buy and sell cryptocurrency like bitcoin, atherium etc., but there is no clear law or regulatory framework that regulates it.
Current Legal Status (up to 2024-25)
The Government of India has neither recognized nor banned cryptocurrency as legal tender (legal currency). This means that you cannot buy goods or service from crypto. But it can be held as investment.
RBI’s stance on this:
- 2018: RBI had instructed banks not to participate in any transactions related to crypto.
- 2020: The Supreme Court canceled the ban and said that people can invest in crypto.
- 2021-2023: RBI again expressed concern over crypto risks (such as money laundering, terror funding, consumer loss) and promoted digital currency (CBDC) ie E-Rupi.
Tax Rules (Applied since 2022):
- The Government of India decided to impose tax on Crypto in 2022, which made it clear that the government is not banning it completely-
- 30% tax: On profits on crypto.
- 1% TDS: Every transaction will be cut.
- No set-off or loss carry forward allowed.
Question 5: What is the future of cryptocurrency in India?
Answer: The future of cryptocurrency in India is full of opportunities and challenges. Spot trade volume of more than 1.6 crore users of platforms like Coin DCX and $ 492 million (about Rs 4,243 crore) in May 2025 shows that interest in people’s crypto is increasing.
However, repeated hacking and uncertainty of government rules remain a challenge. The Government of India may soon issue its first crypto policy letter.
This can make the crypto industry more regulated and safe. Investors in India should be cautious, but there are possibilities in the long -based in blockchain technology and digital assets.
Virtual or digital currency is cryptocurrency
Cryptocurrency is a type of virtual currency. It is also called digital currency. Cryptocurrency can also be transacted like a currency like dollar or rupee.
Bitcoin is the most popular cryptocurrency among them. Every bitcoin transaction is recorded in the public list through blockchain, which is a record maintenance system conducted by different users in a decentralize manner.
,
Read these reports related to bitcoin …
1. Supreme Court said- illegal trade like bitcoin trade hawala: It can affect the economy, why does the government not make a clear policy on cryptocurrency
The Supreme Court on Monday called bitcoin trade as an illegal trade just like hawala business. A bench of Justices Suryakant and N. Kotishwar Singh said that there is a parallel under-market for cryptocurrency and it can affect the economy.
The court asked the central government why you do not make a clear policy to regulate cryptocurrency. The bench told Additional Solicitor General Aishwarya Bhati, appearing for the Center, that the government can monitor the business by regulating cryptocurrency.
Read full news …
2. RBI Governor said-Cryptocurrency Financial Stability is a huge risk: It is necessary to have international understanding, India is the first country to question this
Cryptocurrency is a great risk for financial stability and monetary stability. Shaktikanta Das, Governor of Reserve Bank of India, said this at an event held at Peterson Institute for International Economics on Friday.
He said – I really belong to the opinion that this is something that should not be allowed to dominate the financial system. It also causes risks to the banking system. It can also create a situation where the central bank may lose control of money supply in the economy.
Read full news …
3. Bitcoin crosses 1 million dollars for the first time: Its price in Indian rupee was Rs 86.91 lakh, given 118% return in 1 year
The price of the world’s largest cryptocurrency bitcoin has crossed 1 million dollars for the first time. Today i.e. on December 5, bitcoin has increased by more than 7% to a record high level to $ 102,585 (Rs 86.91 lakh). After Donald Trump’s US election victory last month, Bitcoin has been steadily seen.
Read full news …
