The recent controversy regarding user funds at CoinDCX has ignited conversations across the crypto community, emphasizing the need for clarity and transparency in the sector.
CoinDCX CEO Addresses Allegations Head-On
In a statement that has garnered significant attention, Sumit Gupta, the CEO of CoinDCX, firmly denied claims suggesting that user crypto funds were allocated to a Lithuanian entity not compliant with Indian regulations.
“These allegations are unfounded and contradict earlier communications made by our team,” remarked Gupta, responding to the affidavit submitted by WazirX in the Singapore High Court.
Gupta elaborated by stating, “All user assets at @CoinDCX have consistently been managed by Neblio Technologies, our registered entity recognized by the FIU-IND, ensuring full compliance with Indian laws.”
The assertions made by WazirX noted that the mentioned Lithuanian entity was not registered until February 2025, which raised eyebrows among industry observers.
“The update to our Terms of Use in February 2025 was a transparent measure, not an indication of previous misconduct,” Gupta clarified. This update simply highlighted Neblio Technologies as the formal entity managing funds.
Following the jarring events surrounding WazirX, Gupta emphasized that CoinDCX prioritized user trust and hopes to set a benchmark for compliance across the Indian crypto space. “We initiated these changes to prevent users from experiencing the challenges faced during the WazirX incident,” he stated.
WazirX has faced a tumultuous year, notably contending with a major security breach that resulted in an astonishing loss of approximately $234.9 million in user assets. The exchange responded by suspending all deposits and withdrawals, bringing operations to a standstill.
Meanwhile, Zettai PTE LTD, WazirX’s parent company, has been maneuvering through a complex restructuring plan, seeking approval from the Singapore High Court. However, a setback occurred on June 4th when the court refused to endorse their proposal.
In a subsequent turn of events, Zettai filed for an opportunity to present additional arguments, which the court duly accepted. The upcoming hearing, set for July 15th, will potentially address the ongoing allegations against CoinDCX.
“It’s essential for everyone to remain vigilant against misinformation,” Gupta urged in his communication. “Our commitment to user safety, transparency, and compliance with regulations will always be paramount.”
Bitcoin Market Trends
In the meantime, Bitcoin has achieved a remarkable milestone, peaking at an all-time high (ATH) of approximately $123,000 recently. However, following this surge, the price has slightly retraced to around $121,900, marking an impressive 12% increase over the past week.
