CoinDCX Closes Ranks Amid WazirX Accusations
Crypto in India is entering its next phase of maturity—and the recent exchange of allegations between CoinDCX and WazirX brings regulatory transparency into sharp focus.
🚨 Allegations Raised
WazirX filed affidavits in Singapore, asserting that CoinDCX transferred customer assets to a Lithuania-based entity that did not secure FIU approval until February 2025—raising concerns over possible non-compliance .
🔐 CoinDCX Hits Back
Sumit Gupta, CoinDCX’s CEO, rejected the claim, stating:
- No Lithuanian entity existed under CoinDCX until Feb 2025
- All INR and crypto funds are held in India via Neblio Technologies—an FIU-recognized custodian
- No customer funds were ever moved or stored offshore
🛡️ Raising the Transparency Bar
On February 7, 2025, CoinDCX updated its Terms of Use to clearly identify Neblio Technologies as the contractual party—underlining its emphasis on transparency and risk mitigation, especially after observing the WazirX hack last year .
🌍 Market Implications
This dispute highlights three key trends:
- Regulatory scrutiny on custody and fund segregation
- Competitive signaling—CoinDCX positioning itself as more compliant
- Consumer shield—emphasizing user trust and the stability of fiat and crypto custody
✅ For Users & Investors
For users, the incident underscores the need to verify custody practices and legal disclosures. For the broader industry, it may accelerate compliance measures across Indian exchanges.
