Essential Insights
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CoinDCX CEO Sumit Gupta has denied rumors of a $900 million acquisition by Coinbase, emphasizing the exchange’s focus on building for India’s crypto market.
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The acquisition rumors emerged following a $44 million hack on CoinDCX, which targeted an internal operational wallet used for liquidity management.
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Gupta reassured users that all customer funds remain secure offline despite the breach, and the platform is proactively launching a bounty program for recovery efforts.
- The reports suggested Coinbase views the acquisition as a way to re-enter India’s crypto market after facing regulatory challenges and exiting in 2023.
CoinDCX CEO Denies Reports of $900M Acquisition by Coinbase
CoinDCX CEO Sumit Gupta has officially dismissed rumors of a $900 million acquisition by Coinbase. He made this announcement in a post on X, urging everyone to "ignore the rumors" and stating that CoinDCX remains focused on developing India’s crypto landscape.
The speculation arose following a report from an Indian news outlet claiming Coinbase was in “advanced discussions” to purchase CoinDCX. The report, citing anonymous sources, said the deal would represent a significant reduction from CoinDCX’s 2022 valuation of $2.2 billion.
Gupta emphasized the company’s commitment to its mission, highlighting that CoinDCX, founded in 2018, aims to lead India’s crypto story. The platform, which became India’s first crypto unicorn, has attracted investment from notable firms like Coinbase Ventures and Polychain Capital.
Meanwhile, Coinbase, which paused its Indian operations in 2023 due to regulatory hurdles, reportedly viewed the acquisition as a means to re-enter the market. Coinbase withdrew its services after the Reserve Bank of India imposed pressure regarding UPI payments and trading.
Adding to the recent scrutiny, CoinDCX recently faced a $44 million security breach affecting its internal wallets. However, Gupta assured users that all customer funds remained secure in cold storage. He described the breach as a sophisticated attack and announced a bounty program to incentivize the recovery of stolen funds.
Cupta’s proactive measures and focus on security highlight the evolving tech landscape in crypto. Despite setbacks, CoinDCX’s determination to innovate demonstrates its resilience in India’s rapidly changing market.
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