CoinDCX recently noticed some odd activity in its Web3 Mode, affecting 106 users. The crypto exchange acted fast, calming everyone down by confirming their funds were secure and pledging a security update to beef up Web3 Mode’s defenses.
They clarified that the issue was limited to Web3 Mode, a self-custody wallet where users keep their own private keys and have total control over their money. The main exchange remained completely unaffected. The exchange itself wasn’t affected, and trading, as well as withdrawals, continued without disruption.
But while the company was busy addressing security concerns, an unusual glitch caught attention. A user named Prabhanjan reported that he lost USDT and BNB at midnight but was impressed by how quickly CoinDCX reimbursed him with 272 USDT in his exchange wallet. The funny part? His transaction history bizarrely showed that he had made a 250 million percent profit.
Confused, he took to Twitter and asked, “Do I have to pay tax on the USDT that CoinDCX sent me?”
CoinDCX Cares responded, clearing up any doubts. “Yes, a 30 percent tax applies to the 272 USDT received from CoinDCX, as per Indian regulations on virtual digital assets,” the company replied.
The event underscores the persistent security issues in the Web3 world while also acting as a wake-up call about India’s tough crypto tax rules. CoinDCX has assured users that more updates on the security patch will be shared within the next 12 hours.
While the company works on strengthening its security, this whole episode is another reminder of just how unpredictable the world of crypto can be. One moment you’re dealing with a security flaw, and the next you’re staring at an impossible profit figure in your wallet.
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