Indian Crypto Exchange CoinDCX Engineer Arrested for Allegedly Facilitating $44 Million Crypto Theft

According to Finance Feeds, Rahul Agarwal, an engineer at the prominent Indian cryptocurrency exchange CoinDCX, has been arrested by Bengaluru police on suspicion of facilitating a security breach that resulted in the outflow of approximately $44 million (approximately 380 million rupees). The incident occurred on July 19, 2025, when CoinDCX discovered a large amount of funds had been transferred from its wallet to multiple external addresses. An investigation revealed that Agarwal may have installed malware, potentially leaking login credentials and allowing the attackers to gain access to internal systems. Police have filed a case against him under the Indian Information Technology Act and other provisions, and have discovered transactions between his personal account and the attackers. CoinDCX has launched an asset recovery bounty program, offering rewards of up to 25% of the recovered funds to expedite the recovery of funds. Previously, the Indian cryptocurrency exchange CoinDCX was suspected of having suffered a theft of $44.2 million, but officials stated that no customer funds were affected.