Coinbase is reportedly in late-stage talks to acquire Indian crypto exchange CoinDCX, weeks after the $44 million crypto heist.
According to Indian media outlet Livemint, the deal would appraise CoinDCX at below $900 million, a steep decline from its peak valuation of $2.2 billion in 2021.
Per two sources familiar with the development, Coinbase views the acquisition as a long-term strategic investment in the Indian crypto market. Coinbase already holds India’s Financial Intelligence Unit (FIU) registration and owns stakes in CoinDCX and CoinSwitch.
“Buying CoinDCX at this discounted valuation is essentially a low-cost gamble—positioning itself for potential upside if India’s crypto market eventually matures,” one of the two sources said.
However, in a most recent update on X, CoinDCX CEO Sumit Gupta called the Coinbase acquisition “rumours”.
“CoinDCX is “super focused” on building for India’s crypto story and not up for sale,” he confirmed. “Will share more later but just wanted to clarify this upfront!”
Coinbase Prepares to Roll Out Retail Crypto Trading in India
Coinbase initially launched in India in April 2022 but quickly halted UPI payments and trading services amid RBI pressure. Though it officially halted services for Indian users on Sept. 25, 2023, Coinbase did not signal a full exit from the market.
Following the FIU registration in March, Coinbase has officially received the nod to resume crypto trading services in India.
“We have a bold mission to increase economic freedom globally, and continuously explore opportunities around the world to build, buy, partner, and invest to accelerate our roadmap,” a Coinbase spokesperson told Livemint, declining to comment on the acquisition rumors.
Further, Coinbase is reportedly considering combining its stakes in both CoinDCX and CoinSwitch, which is “likely” but not confirmed yet.
“We don’t have active conversations in this regard at this time,” CoinSwitch co-founder Ashish Singhal confirmed.
CoinDCX Intends to Rebuild Trust Post Crypto Hack
On July 19, the Indian crypto platform suffered a massive security breach, resulting in crypto losses of $44 million. The hack occurred on an internal account used to provide liquidity to customers. CoinDCX assured that customer funds remain safe.
Cybersecurity experts reported that the incident is linked to the infamous North Korean Lazarus Group and follows the same exploit pattern as WazirX heist last year, resulting in a loss of $234 million.
CoinDCX later announced a recovery bounty program where up to 25% of any recovered funds will be awarded to those who help trace and retrieve the stolen crypto. The bounty could amount to as much as $11 million.
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