- CoinDCX CEO denied claims of moving user funds to unregistered entities in Lithuania.
- Allegations against CoinDCX surfaced through a rival exchange, WazirX, which faces its own legal issues after a $230 million hack.
- An affidavit in Singapore‘s High Court stated that CoinDCX held user funds in a non-compliant Lithuania-based entity until February 2025.
- CoinDCX CEO said user assets are managed exclusively by Neblio Technologies, registered with India‘s Financial Intelligence Unit.
- CoinDCX updated its Terms of Use in February to enhance user trust and regulatory transparency.
On Saturday, CoinDCX CEO Sumit Gupta addressed allegations that the Indian crypto exchange moved user assets to a Lithuania-based entity not registered with India’s Financial Intelligence Unit. The claims were reportedly made by another Indian crypto company, WazirX, and referenced in an affidavit filed in Singapore’s High Court. The matter is scheduled for a hearing in July 2025.
According to the affidavit, WazirX alleged that CoinDCX used a Lithuania-based company to hold user funds until at least February 2025. The Lithuania entity was not registered for compliance with India’s financial regulations. WazirX has been under scrutiny since suffering a $230 million cyberattack last year.
Gupta called the accusations misinformation, stating in a message to CoinDesk that user assets, both in local currency and crypto, are “held by Neblio Technologies, our FIU-IND registered entity, which is fully compliant with all Indian laws.” He further emphasized, “CoinDCX did not have any entity in Lithuania until Feb 2025. We only engaged with third-party entities to explore potential global expansion. No business was ever conducted by CoinDCX in Lithuania, and no user funds were ever moved to or held by any Lithuania-based entity.”
He explained that on February 7, 2025, the company updated its Terms of Use to make Neblio Technologies the formal contract party for users, aiming to promote transparency and user trust. Gupta stated this was done to avoid problems similar to those experienced by WazirX and ensure continued compliance.
CoinDCX described its process as proactive and encouraged other Indian exchanges to adopt similar standards, stating that the company remains committed to user safety, transparency, and regulatory compliance. For more details on these claims, refer to this statement from WazirX.
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