“Don’t fall into misinformation,” said Sumit Gupta, co-founder and CEO of Indian crypto exchange CoindCX, on Saturday amid allegations that the exchange had transferred funds to non-compliant entities in Lithuania.
The allegations were reportedly made by another Indian exchange Wazirx, which has been scrutinized since last year’s $230 million hack.
In an affidavit filed as part of the Singapore High Court lawsuit (Hearing will be scheduled for July 15th, 2025)Wazirx reportedly claimed that CoindCX holds user funds in a Lithuania-based entity not registered with the Indian Financial Information Unit. (fiu) Until February 2025.
Gupta denied these allegations in a message to Coindesk, highlighting that his India-based users INR and Crypto funds are always held by Neblio Technologies, a registered FIU India entity that is fully compliant with all Indian laws.
“For the record: CoindCX had no entities in Lithuania until February 2025. We were only involved with third-party entities to explore potential global expansion. (Neblio Technologies) In Lithuania, no user funds were moved or held to Lithuania-based entities,” Gupta said.
He added that Exchange updated its terms of service on February 7th this year to make Neblio Technologies an official contract party, with changes made to enhance transparency and user trust.
“We have done this proactively to ensure that CoindCX users never face the challenges they see in the Wazirx episode. This approach protects the user’s interests and hopes that other Indian exchanges will adopt the same standards,” Gupta said, “We are always committed to user safety, transparency and compliance with regulations.”
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