CoinDCX Denies WazirX Allegations of Non-Compliant Funds Transfer

Indian cryptocurrency exchange CoinDCX has vehemently denied allegations made by its rival, WazirX, which claimed that CoinDCX had transferred user funds to a non-compliant entity in Lithuania. The accusations surfaced through court documents filed by WazirX in Singapore, asserting that CoinDCX held user funds in an entity located in Lithuania that was not registered with the Financial Intelligence Unit (FIU) in India until February 2025.

Sumit Gupta, the CEO of CoinDCX, has firmly refuted these claims, stating that the relevant user funds are managed by Neblio Technologies, an entity registered in India and fully compliant with FIU regulations. Gupta emphasized that CoinDCX has never conducted business in Lithuania nor transferred any user funds to the country, labeling the allegations as misleading information.

The dispute between CoinDCX and WazirX underscores the competitive tensions and regulatory challenges within the Indian cryptocurrency market. WazirX's allegations point to broader concerns about the transparency and regulatory compliance of cryptocurrency exchanges in the region. However, CoinDCX's denial and Gupta's statements highlight the exchange's commitment to regulatory adherence and the security of user funds.

The incident also raises questions about the reliability of information shared in court documents and the potential for misinformation in competitive environments. The denial by CoinDCX is a significant development in the ongoing dispute between the two exchanges, emphasizing the importance of regulatory compliance and transparency in the cryptocurrency industry. This is particularly crucial in a region like India, where regulatory frameworks are still evolving.

The incident serves as a reminder to users and investors to exercise caution and stay well-informed when dealing with cryptocurrency exchanges. It is essential to ensure that funds are managed by compliant and trustworthy entities to safeguard against potential risks and misinformation.