According to CoinDesk, the Mumbai-based exchange initially dismissed reports of suspicious outflows as a false alarm. It later acknowledged an internal process failure linked to a retired wallet, resulting in a loss of $16 million. The exchange stated it will absorb the financial impact without passing costs to users or regulators.
The failure occurred within processes related to the now-retired wallet system. Officials confirmed the issue arose from how funds were handled during routine operations involving that wallet. No regulatory violation or third‑party involvement is alleged. The exchange has not disclosed further technical details about the process change or remediation steps.
Management indicated the loss reflects an internal accounting adjustment and does not affect ongoing services, customer balances, or platform functionality. The exchange plans to review its wallet management procedures but has not announced a timeline for implementation.
