The Bengaluru City police have arrested an employee of India-based cryptocurrency exchange, CoinDCX in connection with an ongoing investigation. According to local reports that surfaced on Thursday, Rahul Agarwal, a software engineer of the embattled exchange is currently facing questions on the recent $44 million hack.
As reported, hackers allegedly took over his login details to steal assets worth $44 million from the cryptocurrency exchange. Neblio Technologies, the operator of CoinDCX made the complaint to the police following an internal investigation.
The investigation revealed how the hackers gained unauthorized access to the exchange’s servers using Agarwal’s credentials. Following his arrest, the employee refuted any contribution to the cyber attack.
However, he confessed to working with about four private clients part-time while he is with the crypto trading platform. Currently, CoinDCX has yet to state the arrest.
Insight into the arrest
The Times of India reported that Bengaluru police stated that the vice president for public policy for Neblio, Hardeep Singh disclosed that Agarwal is a permanent staff member of the exchange. Furthermore, due to his role, Agarwal was assigned a work laptop.
Neblio during the investigation realized that an unknown person had hacked the laptop late on July 19 and moved 1 USDT from the exchange. The following morning, the attacker went on to transfer $44 million to six different wallets.
As per the police report, the attackers lured Agarwal into installing malware on his office laptop. Before his arrest, Agarwal had been working with CoinDCX for the last two years as a senior software engineer. Then, the employee worked remotely from Bengaluru, Karnataka.
Thereafter, he earned a promotion to become a staff engineer in April 2025 and moved to the corporate office of the exchange to discharge his duties.
CoinDCX CEO urges public to shun fake information
Meanwhile, the co-founder and CEO of CoinDCX, Sumit Gupta through his X page on Thursday emphasized that the exchange cannot talk with the media due to the ongoing investigation. In his statement, he narrated how the exchange’s internal preliminary investigation revealed that the hackers managed to gain access through a social engineering attack.
He went on to illustrate that crypto employees are usually victims of such attacks. The CEO went on to urge the media and public to shun speculation and avoid spreading unverified information.
More so, Gupta added that at the moment, rumors may affect the ongoing investigation.
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