Sumit Gupta, Co-founder and CEO of Indian cryptocurrency exchange CoinDCX, has addressed recent allegations regarding the exchange's handling of user funds. Gupta stated, "Please don't fall for misinformation," as he responded to claims made by another Indian exchange, WazirX, which alleged that CoinDCX had moved user funds to non-compliant entities based in Lithuania.
WazirX, which has faced scrutiny since a $230 million hack last year, made these allegations in an affidavit filed with the Singapore High Court. According to the affidavit, CoinDCX supposedly held user funds in a Lithuania-based entity that was not registered with India's Financial Intelligence Unit until February 2025. Gupta refuted these claims, emphasizing that user funds for Indian customers have always been managed by Neblio Technologies, an entity registered with India's FIU and fully compliant with Indian laws. Gupta clarified, "For the record, CoinDCX did not have any entity in Lithuania until February 2025.
Our engagement with third-party entities in Lithuania was solely for exploratory purposes related to potential global expansion, and no business was conducted, nor were any user funds moved or held by any entity based in Lithuania." Gupta also mentioned that CoinDCX updated its Terms of Use in February to make Neblio Technologies the formal contracting party, a change made to enhance transparency and trust with users. He expressed hope that other Indian exchanges would adopt similar standards, reiterating CoinDCX's commitment to user safety, transparency, and regulatory compliance.