₹379 Crore Crypto Heist: How a Bengaluru Engineer Pulled Off One of India’s Biggest Digital Thefts

A 28-year-old Bengaluru-based software engineer is at the centre of a massive crypto heist that shook India’s digital finance world. Over ₹379 crore vanished from CoinDCX, one of India’s top cryptocurrency exchanges. What looked like a regular security flaw quickly turned into a deeper investigation, revealing insider involvement, offshore transfers, and a network of suspicious freelance work. The case has sparked serious concerns about cybersecurity in India’s fast-growing crypto market.

The Heist Unfolds

The accused, a backend developer hired on contract, allegedly gained access to internal systems that allowed him to transfer crypto assets out of CoinDCX wallets over several months. Unlike a dramatic one-time breach, this theft was executed slowly and quietly — drawing little attention until large amounts began to disappear. Authorities say nearly ₹379 crore in digital currency was siphoned out in small, calculated transactions.

How It Went Unnoticed

What’s alarming is that the theft reportedly went undetected for almost a year. Investigators believe the engineer used his access privileges to manipulate records and bypass automated alerts. It was only when inconsistencies appeared during a routine audit that the red flags went up. This delay in detection has raised serious questions about how exchanges monitor internal threats.

Crypto Security Gets a Reality Check

India’s crypto industry has grown rapidly, especially in Tier 2 and Tier 3 cities, with young investors turning to digital assets for alternative income. But this case highlights how platforms may be overlooking internal risks in favour of expansion. The focus has often been on protecting user data from external hacks — not from insiders who know the system.

Freelancing and Foreign Links

Police are now investigating whether the accused worked alone or was part of a larger network. Preliminary findings suggest that some of the stolen funds were moved to overseas wallets and possibly converted into stablecoins to avoid traceability. Investigators are also looking into freelance projects the engineer took up around the same time, including some suspicious contracts with foreign firms.

Why This Matters Beyond Bengaluru

CoinDCX is a major player in India’s crypto space, and such a large-scale theft dents user confidence across the board. For smaller investors in cities like Nagpur, Surat, or Indore, the message is clear — transparency and platform security are non-negotiable. Crypto is still unregulated in India, and this incident adds fuel to the ongoing debate around stricter laws and mandatory reporting standards.

The Bigger Picture

As more Indians step into digital finance, the systems protecting their money need to grow smarter and stricter. This ₹379 crore heist isn’t just a wake-up call for crypto exchanges — it’s a warning for investors, developers, and regulators alike. If trust breaks, adoption will stall. And in a space built entirely on digital trust, that risk is far too expensive.