Rahul Agarwal, an engineer at the Indian cryptocurrency exchange CoinDCX, was arrested by the Bangalore police on suspicion of assisting in a security incident that resulted in the outflow of approximately $44 million (approximately 3.8 billion rupees) in funds.

The incident occurred on July 19, 2025, when CoinDCX detected a large amount of funds flowing from its wallet to multiple external addresses. An investigation revealed that Agarwal allegedly leaked system login credentials by installing malicious software, allowing attackers to infiltrate the internal systems. The police have filed a lawsuit against him under the provisions of the Indian Information Technology Act and found that his account had financial transactions with the attackers. CoinDCX has initiated an asset recovery bounty program, offering a reward of up to 25% of the recovered amount. (FinanceFeeds)