Police in Bengaluru, India arrested a Coindcx software engineer in connection with theft of 3.79 billion rupees ($ 43.4 million) in crypto assets from the exchange last month, The Times of India reported on Thursday.
Local police identified the suspect as 30-year-old Rahul Agarwal, whose office-issued portable credentials were allegedly used to access Coindcx’s internal systems and initiate unauthorized transfers on July 19. The stolen assets were directed to six wallets in a coordinated violation, according to investigators.
Agarwal refused direct involvement, but admitted freelancing for unknown overseas clients. He also received a 1.5 million rupee depositum and a WhatsApp call from a German number shortly before the incident. Police are investigating whether malware or identification abuse during his side work enabled hacked.
The parent company of the exchange, Neblio Technologies, completed an internal probe and confirmed that all customer assets remain safe. Coindcx said it will absorb the losses from its own treasury.
The incident has raised concerns about internal security and potential relations with international hacking groups. Authorities are investigating possible North Korean involvement and repeating tactics used in prior crypto-related violations.
The stolen funds are not recovered. Studies are ongoing.
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