Authorities in Bengaluru, India have apprehended a 30-year-old software engineer, Rahul Agarwal, who works for CoinDCX, in relation to the theft of approximately $43.4 million in cryptocurrency from the exchange, as reported by the Times of India on Thursday. The engineer's work laptop credentials were purportedly used to gain unauthorized access to CoinDCX's internal systems, facilitating the transfer of stolen assets to six wallets on July 19.
Agarwal has denied any direct involvement in the breach but has admitted to freelancing for unidentified foreign clients, receiving a payment of 1.5 million rupees and a WhatsApp call from a German number prior to the incident. Investigators are examining whether Agarwal's freelance work, potentially involving malware or compromised credentials, may have enabled the hack.
The exchange's parent company, Neblio Technologies, has conducted an internal investigation and confirmed the security of all customer assets. CoinDCX has announced that it will cover the losses from its own funds.
The incident has sparked concerns regarding internal security vulnerabilities and potential ties to international cybercrime groups, with authorities exploring possible connections to North Korean hacking groups. The investigation is ongoing, and the stolen funds remain unrecovered.