CoinDCX Denies Moving User Funds to Lithuanian Entity
CoinDCX CEO Sumit Gupta refuted WazirX allegations that the exchange moved user funds to a non-compliant Lithuanian entity. In a Singapore High Court affidavit, WazirX claimed CoinDCX held user funds in Lithuania’s unregistered firm until February 2025. Gupta clarified that CoinDCX’s INR and crypto user funds are securely held by India-registered Neblio Technologies (FIU-IND compliant). He stressed that no entity existed in Lithuania before Feb 2025, and no user funds were transferred there. CoinDCX updated its Terms of Use on Feb 7 to reinforce transparency and urged other Indian exchanges to adopt similar compliance standards.
Neutral
CoinDCX’s clear denial of fund mismanagement and prompt regulatory compliance measures are unlikely to disrupt market confidence. Similar past disputes, such as Binance’s rapid clarifications following service rumors, produced neutral price reactions. Traders can view this update as a procedural resolution rather than a catalyst for significant price movements. In the short term, market volatility should remain low as CoinDCX reinforces transparency. Over the long term, the emphasis on compliance and user fund security could strengthen trust in Indian crypto exchanges, supporting stable growth.