CoinDCX CEO Addresses Allegations of Fund Mismanagement
Clarifying CoinDCX’s Position on User Funds
In a recent development, the CEO of CoinDCX, a prominent Indian cryptocurrency exchange, has firmly rebutted allegations from WazirX concerning the mismanagement of user funds. The debate centers around claims that CoinDCX allegedly transferred user assets to a Lithuanian company unregistered with India’s Financial Intelligence Unit (FIU) until February 2025.
Understanding the Allegations
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Aditya Singh, co-founder of Crypto India, highlighted these allegations through an affidavit connected to ongoing proceedings at the Singapore High Court. According to Singh, WazirX suggested that CoinDCX relocated user funds to an unregistered Lithuanian entity. This move, if true, would directly contradict earlier statements made by CoinDCX’s CEO, Sumit Gupta, in April 2024.
CEO’s Rebuttal and Assurance
Sumit Gupta, the CEO of CoinDCX, took to social media, specifically platform X, to address these claims. He reassured users by stating, “All Indian users’ INR and crypto assets on @CoinDCX have always been, and continue to be held by Neblio Technologies, our FIU-IND registered entity, fully compliant with all Indian laws.” This statement underscores the company’s commitment to regulatory compliance and user safety.
The specific date in February 2025 mentioned by WazirX aligns with CoinDCX’s decision to update its Terms of Use, naming Neblio Technologies as the primary contracting party. WazirX alleged that the funds were transferred back to the FIU-India registered entity in March 2025. However, Gupta’s clarification suggests that the funds were never moved from Neblio Technologies, and the update was merely a step to enhance transparency.
Ensuring Transparency and User Protection
Gupta emphasized that the update in the Terms of Use was a proactive measure. “We did this proactively so that CoinDCX users never face challenges like those seen during the WazirX episode,” explained Gupta. This step was aimed at safeguarding user interests and setting a benchmark for transparency that other Indian exchanges might consider adopting.
Background of the WazirX Incident
Reflecting on past events, WazirX faced a notorious hack a year ago, resulting in a loss of approximately $234.9 million in user crypto funds. This incident severely impacted the exchange, leading to the suspension of operations, including deposits and withdrawals.
Zettai PTE LTD, WazirX’s parent company, is currently navigating through a restructuring phase, seeking the approval of the Singapore High Court. However, their efforts faced a setback when the court declined their proposal on June 4th. Subsequently, Zettai filed for further arguments, with the next hearing scheduled for July 15th, expected to touch upon the allegations involving CoinDCX.
Commitment to Regulatory Compliance
In a final note, Sumit Gupta urged, “Please don’t fall for misinformation. We remain committed, as always, to user safety, transparency, and regulatory compliance.” This statement reinforces CoinDCX’s dedication to maintaining the trust and security of its user base.
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