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The Chief Executive Officer of Indian cryptocurrency exchange CoinDCX has addressed accusations from WazirX by asserting that user funds were never transferred to Lithuania.
CoinDCX CEO Claims User Crypto Assets Have Always Remained Unmoved
As per Crypto India co-founder Aditya Singh, WazirX asserted in an affidavit submitted during the Singapore High Court proceedings that CoinDCX was retaining its users’ crypto assets with a Lithuanian entity that wasn’t recognized by India’s Financial Intelligence Unit (FIU) until February 2025.
“If this is accurate – It contradicts an earlier declaration made by CoinDCX CEO in April 2024,” remarked Singh in the X thread. Sumit Gupta, the CEO in question, has quote-reposted the thread to clarify the situation.
“All Indian users’ INR and crypto assets on @CoinDCX have consistently been, and will continue to be held by Neblio Technologies, our FIU-IND registered entity, fully compliant with all Indian laws,” stated Gupta.
The February 2025 timeline mentioned by WazirX in its affidavit aligns with CoinDCX updating its Terms of Use to identify Neblio Technologies as the official contracting entity. WazirX alleged that the exchange reverted funds back to the FIU-India registered entity around March 2025.
If Gupta’s remarks are to be believed, however, the assets were always with Neblio Technologies, and the Terms of Use update was merely a step to enhance transparency.
“We took this action proactively so that CoinDCX users never encounter issues similar to those experienced during the WazirX incident,” elucidated the CoinDCX CEO. “This strategy protects users’ interests, and we hope other Indian exchanges will follow suit.”
Almost precisely one year ago, WazirX found itself at the center of an infamous breach that resulted in a loss of user crypto assets valued at $234.9 million, nearly half of the platform’s total reserves. The exchange halted operations immediately after the breach was reported and has maintained a suspension on deposits and withdrawals since then.
Zettai PTE LTD, the parent entity of WazirX, has been pursuing authorization for a restructuring plan from the Singapore High Court. However, in a significant setback to its recovery efforts, the court rejected the proposal on June 4th.
The company subsequently submitted a request for additional arguments, which the court accepted. The next hearing, anticipated to involve discussion of the CoinDCX allegation, is slated for July 15th.
“Please don’t fall victim to misinformation,” stated the CoinDCX CEO in his X statement. “We continue to prioritize user safety, transparency, and regulatory adherence.”
Bitcoin Valuation
Bitcoin established a new all-time high (ATH) around the $123,000 level over the past day, but the digital asset has since experienced a slight retracement that has brought its price back to $121,900. The currency is up over 12% for the week.
The value of the coin appears to have been increasing in recent days | Source: BTCUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
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