India's largest cryptocurrency exchange CoinDCX absorbed a loss of 15.99 million USDT following an internal process failure tied to a retired wallet address. The deprecated wallet was originally compromised during a security incident reported on July 19, 2025, and subsequently taken out of service. Despite the deprecation, some users continued depositing funds into the old addresses. CoinDCX credited these portfolios immediately upon receipt, but its secondary "sweeping" mechanism failed to transfer accumulated funds from the deprecated address to the primary custody wallet for a specific period. The exchange stated it absorbed the full loss and confirmed that all user funds remain safe in segregated cold wallets protected by multi-layer custody controls. CoinDCX did not characterize the event as a hack or disclose who was responsible for the irregular fund movement.