Coinbase in Talks to Buy CoinDCX Below $900M After $44M Hack
Key Takeaways
- Deal value: Coinbase is negotiating to acquire CoinDCX at < $900 million, a steep drop from its $2.2B valuation in 2021.
- Strategic move: Coinbase views the deal as a long-term play on India, one of the fastest-growing crypto markets globally.
- Security breach: CoinDCX was recently hacked for $44M via a DeFi liquidity wallet; user funds were not affected.
- Regulatory alignment: Coinbase registered with India’s FIU‑IND in March 2025, preparing for re-entry into the local market.
- Merger speculation: Rumors of a CoinDCX–CoinSwitch merger circulate, though CoinSwitch has denied any active discussions.
- Industry context: The deal reflects a wider valuation reset and wave of M&A across the global crypto sector.
Coinbase Moves Toward India Amid Bear-Market Discounts
Coinbase is in advanced talks to acquire CoinDCX, one of India’s largest crypto exchanges, at a valuation under $900 million, according to Livemint. The figure marks a dramatic correction from CoinDCX’s 2021 peak valuation of $2.2 billion.
For Coinbase, the move is part of a broader strategy to expand internationally amid U.S. regulatory headwinds. The company registered with India’s Financial Intelligence Unit (FIU‑IND) in March 2025, a necessary step to operate legally in the country. With over 100 million crypto users, India remains one of the most important emerging markets globally. Besides, CEO Coinbase Brian Armstrong confirmed that the company remains open to more acquisitions, saying Coinbase is “ready to invest further where it aligns with our long-term mission.”
A Stronger Foothold in India
Coinbase’s interest in CoinDCX comes after it registered with India’s Financial Intelligence Unit (FIU‑IND) in March 2025, laying regulatory groundwork for a potential relaunch. The company’s previous India debut in 2022 was cut short due to banking restrictions and policy uncertainty.
India represents a key strategic market: with an estimated 100 million+ crypto users, it is one of the world’s largest and fastest-growing bases for digital assets. Acquiring CoinDCX would offer Coinbase immediate access to an established user base, local compliance infrastructure, and market credibility.
CoinDCX, founded in 2018, offers spot and margin trading, DeFi access, and staking products to over 15 million registered users. The platform is regarded as one of the most trusted exchanges in India.
CoinDCX Still Recovering from $44M Hack
The negotiations come shortly after CoinDCX suffered a $44 million exploit on July 19, targeting one of its internal liquidity wallets used in DeFi operations. According to CEO Sumit Gupta, no customer funds were impacted, as user assets are stored in cold wallets.
The company confirmed the attack after on-chain analysts, including ZachXBT, flagged unusual outflows. CoinDCX has launched a bug bounty offering up to 25% of recovered funds and is working with CERT-In, SlowMist, and TRM Labs on the investigation. Preliminary findings suggest involvement by North Korea’s Lazarus Group, known for targeting crypto platforms worldwide.
The company is also collaborating with Indian cybersecurity agencies, including CERT‑In, along with global forensics teams to trace the attackers and reinforce operational security. Sumit Gupta stated that the company is absorbing the losses internally and has already begun implementing stronger protocols.
Industry Context: Discounted Deals, Global Expansion
The move aligns with a broader trend: crypto valuations have corrected sharply from 2021 highs, and mergers & acquisitions are accelerating. Well-capitalized firms like Coinbase are seizing the chance to acquire established platforms at reduced prices.
As Coinbase pushes further into Latin America, Europe, and Asia, India’s crypto market, despite tax burdens and policy ambiguity, remains a key frontier. If finalized, the CoinDCX deal would underscore Coinbase’s intent to stay global, even as regulation at home remains uncertain.
