Indian police have arrested a CoinDCX software engineer in connection with the $44 million theft from the Bengaluru-based cryptocurrency exchange’s liquidity wallet on 19 July. Investigators say Rahul Agarwal was duped by scammers posing as freelance employers who persuaded him to install malware on his office laptop, giving attackers access to the exchange’s credentials. The stolen tokens were quickly moved through six digital wallets outside India, complicating recovery efforts. A senior officer involved in the probe described tracing the funds as “near-impossible” because the wallets fall beyond Indian jurisdiction and crypto transfers can be rapidly obfuscated across borders. CoinDCX, one of India’s largest exchanges, said customer balances were not affected and that it will absorb the loss from corporate reserves. The company has offered a bounty equal to 25 percent of any assets that are recovered or information leading to the hackers, and it is cooperating with law-enforcement agencies. Security firms SlowMist and PeckShield estimate that 13 crypto-related breaches cost victims about $140 million in July, with the CoinDCX incident the month’s single largest loss. Global regulators have highlighted social-engineering tactics, such as fake job offers, as a growing threat vector in the digital-asset sector.