CoinDCX suffered a hack that drained about $44 million from its internal liquidity wallet earlier this month.
Key Takeaways
- Coinbase is in advanced talks to acquire India's largest crypto exchange, CoinDCX.
- CoinDCX's valuation has dropped below $1 billion following a $44 million security breach.
Coinbase is reported to be in advanced negotiations with CoinDCX, one of India’s largest crypto exchanges, over a potential acquisition deal that could strengthen its foothold in this emerging market.
CoinDCX may fetch under $1 billion in an upcoming deal, according to India’s publication Livemint, which would be a steep comedown from its peak valuation during the last bull run.
If confirmed, the acquisition would further expand Coinbase’s buying push this year. Following the $2.9 billion acquisition of Deribit, the company snapped up three crypto startups to scale its trading and infrastructure stack. Those are Liquifi, Spindl, and Iron Fish.
CEO Brian Armstrong said in a statement that Coinbase actively considered M&A deals and was ready to spend more if they met the right ones.
In March, the leading US exchange secured a license from India’s Financial Intelligence Unit, aiming to re-enter the market after its brief 2022 launch was cut short by regulatory hurdles.
Talks come as CoinDCX is recovering from a recent $44 million security breach targeting its internal liquidity wallet earlier this month.
CEO Sumit Gupta said no customer funds were affected, as they remain in cold storage. Losses will be covered by the company’s treasury, with enhanced security measures and recovery efforts.
