- Coinbase is reportedly negotiating to acquire CoinDCX at a valuation under $900M aiming to re-enter India’s crypto market strategically.
- CoinDCX recently faced a $44M hack linked to Lazarus Group, prompting questions about crypto security in India and possibly influencing acquisition dynamics.
- As the company stated it does not have an acquisition plan, CoinDCX implemented a recovery bounty that rewards up to 25% of funds recovered, indicating survival and active crisis management.
U.S. based cryptocurrency exchange and trading platform Coinbase is said to be in an advanced stage of discussions to acquire CoinDCX, the largest crypto exchange in India.
The potential deal surfaced just weeks after CoinDCX confirmed a $44 million security breach linked to a compromised liquidity account.
According to Indian news outlet Livemint, the acquisition could value CoinDCX below $900 million, significantly down from its $2.2 billion peak in 2021. The reported negotiations come at a time when Coinbase seeks to strengthen its presence in India’s evolving digital asset ecosystem. Meanwhile, CoinDCX has publicly denied any sale discussions, asserting its continued focus on the Indian market.
Coinbase Eyes Cost-Effective Re-Entry into India’s Crypto Market
Some individuals familiar with the matter indicated that Coinbase views the deal as a long-term investment. The company already holds Financial Intelligence Unit (FIU) registration in India. Additionally, it maintains equity positions in both CoinDCX and its rival, CoinSwitch.
According to the sources, Coinbase is evaluating the option to merge these holdings in a potential consolidation move. Although this plan is described as “likely,” no final decision has been confirmed. Rumors heated up and CoinDCX co-founder Sumit Gupta replied to them in a social media post stating CoinDCX is already super focused on building the crypto story in India and is not up to sale.
Coinbase launched its services in India in April 2022 and had to stop two months later because of regulatory restrictions. Its recent interest in India despite its early withdrawal demonstrates its desire to regain its advantage. Buying CoinDCX at a reduced valuation is seen as a cost-effective method to re-enter the market, particularly if local adoption expands over time.
CoinDCX Confirms $44 Million Heist from Liquidity Account
The takeover talks came shortly after CoinDCX suffered a major security breach. On July 19, the platform revealed that an internal liquidity account was compromised, leading to losses of $44 million. CoinDCX has assured users that customer funds were unaffected by the incident. The company has since launched an investigation into the breach.
Cybersecurity experts tied the attack to North Korea’s Lazarus Group, citing similarities with the WazirX exploit in 2023. That previous attack resulted in losses exceeding $230 million. Investigators believe the recent CoinDCX hack followed an almost identical pattern, raising further questions about regional crypto security.
CoinDCX Launches $11M Recovery Bounty While Denying Sale Speculation
Following the breach, CoinDCX announced a recovery bounty initiative aimed at tracing and retrieving stolen assets. The program promises up to 25% of any recovered funds to contributors, which could total $11 million. The company has invited independent experts and security researchers to assist in locating the assets. This initiative mirrors strategies used by other exchanges in recent recovery efforts.
CoinDCX’s clarification against sale rumors followed shortly after the media reports. The company reiterated its focus on building for India’s digital asset sector. However, no additional details were provided, and updates are expected in the coming days.
