An employee of the CoindCX, a cryptocurrency exchange hacked $ 44 million in mid-July, was arrested in India in connection with a security violation, according to several local reports.
Bengaluru City Police have stopped COINDCX software engineer Rahul Agarwal after allegedly managing hackers to compromise his swinging credentials to kick the exchange ownership, the Times of India reported on Thursday.
The arrest followed a complaint and internal investigation by the CoindCX Neblio Technologies operator, which determined that Agarwal’s credentials were compromised by his laptop at work, allowing unauthorized access to company servers.
During the inquiry while his laptop was obtained, Agarwal, 30, refused to participate in crypto theft, but admitted to perform part-time jobs up to four private clients while still working at the CoindCX.
“Sophisticated Attack In Social Engineering”
The COINDCX has refused to confirm or deny the arrest of Agarwal in Cointelegraph, referring to an X post of CoindCX co-founder and CEO Sumit Gupta, who publicly told Thursday that the exchange could not engage in the media amid an ongoing investigation.
“Based on our internal initial findings, this seems to be a sophisticated attack on social engineering,” Gupta told the post, adding that employees would often target such attacks.
“We encourage the media and the public to avoid the speculation or the circulation of unspecified information, as it may hinder the ongoing investigation,” a spokesman for the CoinDCX told Cointelegraph.
Agarwal’s professional background
Mentioning the Vice President of Neblio for public policy, Hardeep Singh, the Bengaluru police officer reported that the arrested employee was a permanent staff and issued a laptop that was strictly for his role in the CoindCX, according to the Times of India.
Agarwal investigated after Neblio discovered that an unknown individual hacked the system on the night on July 19 and moved a Tether USDT (USDT) Stablecoin In a purse. Eventually this morning, hackers were absorbing $ 44 million and transferring funds to six purses.
According to In a LinkedIn profile considered Agarwal’s, the CoindCX’s arrested employee has been with the COINDCX for more than two years, building his career in the domain of devops.
He started as a senior software engineer in May 2023, working remotely from Bengaluru, Karnataka. After two years in this paper, he was promoted to the Staff Engineer in April 2025, a position he is currently holding and performing on the site.
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According to the Indian Express, police officers said hacker tricked Agarwal to install malware on his office laptop.
The news came days after the CEODCX CEO Gupta reports that the exchange is that -hack On July 19.
He said no user funds were affected by exploitation, adding that hackers have compromised one of the COINDCX’s internal accounts used for “liquidity provisions” in another exchange through a server violation.
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