The CEO of Indian crypto exchange CoinDCX has responded to WazirX allegations by denying that user funds were ever moved to Lithuania.
CoinDCX CEO Says User Crypto Funds Have Never Been Moved
According to Crypto India co-founder Aditya Singh, Wazirx claimed in an affidavit filed as part of the Singapore High Court proceedings that CoinDCX was holding its users’ crypto funds with a Lithuanian entity that wasn’t registered with India’s Financial Intelligence Unit (FIU) until February 2025.
“If this is true – It contradicts with earlier statement made by Coindcx CEO in April 2024,” noted Singh in the X thread. Sumit Gupta, the CEO in question, has quote-reposted the thread to provide clarity on the matter.
“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,” said Gupta.
The February 2025 date referenced by WazirX in its affidavit coincides with CoinDCX updating its Terms of Use to name Neblio Technologies as the formal contracting party. WazirX claimed that the exchange moved funds back to the FUI-India registered entity around March 2025.
If Gupta’s statement is to go by, however, the funds were always with Neblio Technologies and the Terms of Use update was simply a measure to strengthen transparency.
“We did this proactively so that CoinDCX users never face challenges like those seen during the WazirX episode,” explained the CoinDCX CEO. “This approach safeguards users’ interests and we hope other Indian exchanges adopt the same standard.”
Almost exactly one year ago from today, WazirX was at the center of an infamous hack that led to a loss of user crypto funds worth $234.9 million, almost half the platform’s entire reserve. The exchange shut down operations as soon as the hack became known and has kept deposits and withdrawals suspended ever since.
Zettai PTE LTD, the parent company of WazirX, has been seeking approval for a restructuring plan from the Singapore High Court. However, in a major blow to its recovery efforts, the court declined to sanction the proposal on June 4th.
The company subsequently filed a request for further arguments, which the court accepted. The next hearing, expected to include discussion of the CoinDCX allegation, is scheduled to take place on July 15th.
“Please don’t fall for misinformation,” said the CoinDCX CEO in his X statement. “We remain committed, as always, to user safety, transparency, and regulatory compliance.”
Bitcoin Price
Bitcoin set a new all-time high (ATH) around the $123,000 level during the past day, but the digital asset has since seen a minor pullback that has sent its price back to $121,900. The coin is up more than 12% on the week.
The price of the coin seems to have been on the rise in recent days | Source: BTCUSDT on TradingView
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