CoinDCX Denies WazirX Allegations Over Lithuania Entity and User Funds

Indian crypto exchange CoinDCX has firmly denied allegations from rival platform WazirX that it misused user funds by transferring them to a non-compliant entity in Lithuania. The claims surfaced amid ongoing legal proceedings at the Singapore High Court, where WazirX submitted an affidavit alleging CoinDCX held customer funds in a Lithuania-based firm not registered with India’s Financial Intelligence Unit (FIU) until February 2025.

CoinDCX Co-founder and CEO Sumit Gupta addressed the controversy on Saturday, urging the public not to fall for misinformation. In a statement to CoinDesk, Gupta clarified that all user assets—both INR and crypto—are securely held by Neblio Technologies, CoinDCX’s FIU-IND registered entity in India.

“For the record, CoinDCX did not operate any entity in Lithuania until February 2025,” Gupta stated. “We only worked with third-party service providers to explore global opportunities, but no user funds were ever moved to or held by any Lithuania-based entity.”

To strengthen trust and transparency, CoinDCX updated its Terms of Use on February 7, 2025, officially naming Neblio Technologies as the contractual counterparty for users. Gupta emphasized that the move was made proactively to prevent situations like the $230 million hack that impacted WazirX in 2024.

The CoinDCX CEO reaffirmed the company’s commitment to regulatory compliance, transparency, and safeguarding user assets. “We hope other Indian exchanges adopt the same standard,” he said, adding that CoinDCX remains dedicated to user protection in an increasingly regulated crypto landscape.

This latest dispute highlights growing scrutiny in India’s crypto market, where regulatory oversight and user safety have become central issues for major exchanges.