CoinDCX Pushes Back: No Funds Moved Amid WazirX Claims

India’s crypto ecosystem is witnessing a heated public dispute—CoinDCX is firmly denying allegations raised by rival WazirX, which claims the exchange transferred user funds to a non-compliant Lithuanian entity.

1. What happened
In legal filings before the Singapore High Court scheduled for mid-July, WazirX accused CoinDCX of relocating user assets to a Lithuania-based entity that purportedly lacked approval from India’s Financial Intelligence Unit (FIU) before February 2025 .

2. CoinDCX’s response
CEO Sumit Gupta responded decisively, urging users not to fall for misinformation. He clarified that:
• No Lithuanian entity existed under CoinDCX’s control until February 2025, and no transfers were made to such an entity.
• All user funds—both INR and crypto—are held securely by Neblio Technologies, an India-based and FIU-registered custodian.

3. Strengthening user confidence
The platform updated its Terms of Use on Feb 7, 2025, to specify Neblio Technologies as the primary contractual entity. Gupta noted this proactive legal clarification aims to prevent scenarios like the WazirX hack, emphasizing regulatory alignment and safeguarding transparency .

4. Context of competition and trust
WazirX—still reeling from a July 2024 hack that saw over $230 million stolen—appears to be escalating legal pressure in a high-stakes rivalry. The public exchange highlights the growing importance of trust, regulatory compliance, and safe custody in India’s still-maturing crypto market .

5. What this means for users & the market
This dispute underscores the spotlight on Indian exchanges to build transparent, compliant custody infrastructure. CoinDCX’s stance signals its commitment to clarity and may prompt competitors to match or exceed regulatory standards.

Bottom line
As the WazirX–CoinDCX conflict unfolds in courtrooms and headlines, CoinDCX aims to reassure users: no funds moved offshore, custody remains in India, and compliance is central to its operations.