CoinDCX has announced a recovery bounty program offering ethical hackers up to 25% of recovered funds following a $44 million stablecoin security breach. The initiative spotlights ongoing vulnerabilities in centralized cryptocurrency exchanges (CEXs), which accounted for over 65% of total Web3 financial losses in Q2 2024.
The hack represents one of several major CEX incidents this year, including WazirX’s $230 million theft, cumulatively resulting in nearly $500 million in sector losses. Security researchers attribute this trend to systemic weaknesses in centralized platforms’ infrastructure and custodial practices.
CoinDCX’s bounty proposal marks a proactive effort to engage cybersecurity experts and mitigate future threats. Industry analysts view this community-driven recovery approach as a strategic response to mounting institutional pressure for enhanced asset protection measures.
The incident underscores persistent security gaps across cryptocurrency exchanges, with centralized platforms remaining prime targets despite increased regulatory scrutiny. This exploit reinforces calls for comprehensive security overhauls within the digital asset industry.