The mainstream media reported that Coindcx employee Rahul Agarwal was arrested in Bengaluru after the server breach at Coindcx was investigated. The investigators found that the hackers who stole crypto worth $44 million had used the company issued laptop of 30 year old employee Rahul Agarwal to access the CoinDcx systems and rob the crypto.

When questioned Rahul Agarwal denied being involved in the crypto theft. However, he admit that he had taken up some part time jobs, to supplement his income, and while doing this work, his laptop may be hacked. Investigators are also checking a transfer of Rs 15 lakh from Germany into the bank account of Rahul Agarwal a few days before the incident, to check if it is linked to the hacking.

This incident again highlights the double standards of the crypto exchanges regarding security and know your customer/employee. Coindcx has refused to release a small amount of $6 to a customer, asking for the national id proof of the sender, which the customer/client will not send to the vendor for such a small amount.
While Coindcx has very stringent rules for customers, it is allegedly lax with their employees allowing them to freelance, without doing any background check. The employees are also using company issued laptops for their freelancing work, which can result in malware, ransomware being downloaded, infecting the company network.