Indian Crypto Exchange CoinDCX Denies Moving User Funds After WazirX Allegations
CoinDCX CEO Sumit Gupta has vehemently denied allegations of transferring user funds to non-compliant entities in Lithuania, urging caution against misinformation. These allegations, reportedly originating from WazirX—an Indian exchange currently under investigation following a significant $230 million hack last year—were made in an affidavit submitted to the Singapore High Court. The affidavit, part of proceedings scheduled for July 15, 2025, claims CoinDCX held user funds in an unregistered Lithuanian entity until February 2025, a claim Gupta firmly refutes.
Gupta’s statement to CoinDesk clarifies that CoinDCX, operating under the registered Indian entity Neblio Technologies, has always maintained user INR and cryptocurrency funds within India, fully complying with all local regulations. He emphasizes that the exchange had no presence in Lithuania until February 2025 and any interactions with Lithuanian entities were solely for exploring potential international expansion, with no actual business conducted or user funds transferred.
The updated Terms of Use, implemented on February 7, 2025, formally designates Neblio Technologies as the contracting party for CoinDCX users. Gupta positions this proactive measure as a crucial step to enhance transparency and build user trust, citing the WazirX incident as a cautionary example of the risks involved. He argues that this approach prioritizes user protection and suggests that other Indian exchanges should adopt similar practices to safeguard user interests.
Gupta underscores CoinDCX’s unwavering commitment to user safety, transparency, and strict adherence to all relevant regulations. The allegations leveled by WazirX appear to stem from the ongoing legal battles and scrutiny facing the latter exchange, raising questions about the motivations behind these claims. The upcoming Singapore High Court hearing in July 2025 will provide a platform to address these allegations formally and determine the veracity of WazirX’s assertions. The case highlights the ongoing challenges and complexities facing the Indian cryptocurrency market and the importance of robust regulatory frameworks and transparent operational practices within the industry.
