Coinbase in Talks to Acquire India’s CoinDCX for Under $1B After $44M Hack

As India prepares its first national crypto policy, Coinbase may acquire CoinDCX at a steep discount, deepening its long-term bet on the country’s digital asset sector.

Coinbase Eyes Strategic Expansion in India

Coinbase is reportedly in advanced negotiations to acquire Indian cryptocurrency exchange CoinDCX in a deal valued at under $1 billion. The potential acquisition marks a major development for the U.S.-based exchange as it seeks a stronger foothold in the rapidly growing South Asian market.

The advertised valuation is now down more than 50% from CoinDCX’s 2021 peak of $2.2 billion, mirroring a general market cooldown and, after a high-profile hack, a downshifting in CoinDCX’s operational credibility.

While it already has minority interests in CoinDCX and competing CoinSwitch, the acquisition suggests Coinbase is not taking its foot off the accelerator in the Indian crypto ecosystem, just months after receiving a Financial Intelligence Unit (FIU) license in March 2025.

Hack Fallout: $44M Exploit and the Trust Gap

The deal comes just weeks after CoinDCX suffered a $44 million exploit, prompting industry-wide scrutiny over the platform’s security infrastructure. On July 19, a breach drained funds from an internal hot wallet used for liquidity provisioning. Fortunately, customer funds stored in cold wallets were not affected.

CoinDCX swiftly covered the loss using treasury reserves and announced a bug bounty program with a reward of up to 25% of recovered funds, capped at $11 million. The company also processed over 31,000 withdrawal requests in a single day and suspended its Web3 operations to tighten security controls.

Blockchain investigator ZachXBT flagged the suspicious flows, noting that attackers funneled the stolen assets through Tornado Cash and cross-chain bridges to obscure traceability. Two wallets, containing over 155,000 SOL and 4,400 ETH, remain under surveillance.

Though initial speculation suggested links to North Korea’s Lazarus Group, no formal attribution has been confirmed.

For more on the technical details and user protection efforts, see this detailed report breaking down the CoinDCX hack and its aftermath.

Coinbase’s Broader M&A Strategy

This would be Coinbase’s second major acquisition of 2025, following the $2.9 billion purchase of crypto derivatives giant Deribit. The company has also completed smaller acquisitions involving Spindl, Liquifi, and Iron Fish, a strategic pattern aimed at diversifying both product offerings and regional influence.

Coinbase briefly launched operations in India back in 2022, but regulatory pushback prompted a retreat. Now, with formal licensing in place and India preparing its first federal crypto legislation, Coinbase sees a window to re-enter with more institutional support.

According to a June 2025 report from CoinGeek, India’s crypto policy is expected to focus on licensing rules, custody standards, and tax transparency, which could favor well-capitalized and compliance-oriented firms like Coinbase.

Trust and Timing: Why the Deal Matters Now

CoinDCX’s brand has taken a hit from the latest security incident, and the lower acquisition valuation demonstrates residual concerns around risk and governance. Nevertheless, the firm remains India’s largest crypto exchange in terms of users, with a reported 13+ million registered users. 

Coinbase’s interest in acquiring CoinDCX at even a discount demonstrates some level of confidence in the potential of the crypto market in India long term. India has one of the world’s largest youth populations, rising mobile adoption, and a willingness to experiment with decentralized finance. 

In addition, the timing creates leverage for Coinbase as acquiring CoinDCX now would position Coinbase to be able to scale just as the regulatory framework is likely to start to emerge. This could use India as a potential launchpad for further growth in Asia and into neighboring markets such as Pakistan and Bangladesh as they begin to explore their own crypto frameworks. 

Security Oversight in Focus

The CoinDCX hack has renewed industry calls for stronger custody audits, risk disclosures, and hot wallet exposure limits among centralized exchanges. Critics argue that CoinDCX lacked robust transparency regarding wallet infrastructure, despite its size.

Still, CoinDCX has taken corrective actions post-breach. It reportedly improved key security protocols, expanded audit partnerships, and has pledged to publish updated transparency reports by Q4.

A recent CryptoSlate analysis notes that if Coinbase finalizes the deal, it could impose stricter operational controls on the Indian exchange, aligning it more closely with U.S. compliance standards.

What’s Next?

Negotiations between Coinbase and CoinDCX are ongoing, with no final agreement confirmed as of July 29. Sources close to the matter expect a decision by late Q3 2025. Should the deal move forward, it would mark a strategic reset for both companies, one looking to rebuild, the other to expand.

In a market still recovering from recent volatility, the move may signal a broader trend: well-capitalized firms acquiring distressed but high-potential platforms to gain early advantage ahead of coming regulatory inflection points.

As the lines blur between global crypto players and local infrastructure, Coinbase’s potential India pivot could prove to be more than just a market expansion, it may define the company’s next phase of international growth.