CoinDCX Denies Being Under Legal Scanner Over Fraud: Details

Sumit Gupta, the CEO of CoinDCX crypto change has refuted claims that it has allegedly defrauded a few of its customers. This response got here after media studies citing nameless police officers from Delhi claimed that CoinDCX requested customers to pay extra cash to course of withdrawals – with a promise of tax deduction and refund from the corporate. As per Gupta, it was not CoinDCX however different pretend web sites named just like CoinDCX that have been fueling this chaos.

“We’ve learnt of users having reported fraud related to the use of CoinDCX’s App through the recent media outlet’s article. We would like to confirm that no such incident has occurred on the CoinDCX App or website and this issue appears to be unfortunately a case of fake website scam which is rampant in the industry. It’s important to note that several fake websites/URLs are in operation, mimicking financial apps to deceive users, a challenge faced by many fintech players and financial apps including crypto apps. Swiftly, we have reported these threats to CERT,” Gupta wrote in an in depth X put up.

Screenshots now rising on X present potential victims complain about CoinDRX and never CoinDCX.

As of now, Delhi Police have neither accepted nor denied opening a probe on this crypto change. More particulars on the identical stay awaited.

Here’s What Happened:-

A story by Indian Express claimed that CoinDCX was being investigated after a number of customers lodged complaints towards the platform. Citing particulars from the FIR, the media home reported {that a} major inquiry within the case has recognized a cognisable offence and is now lining up victims to know if CoinDCX duped its customers through fraud – asking customers to deposit an additional lump sum from which it might deduct the taxes and refund the remaining earlier than letting them withdraw their investments.

Users of the change who have been nervous they may very well be victims of a monetary fraud initiated by the industrially-stressed change, unleashed onto India’s crypto sector through social media.

Reacting to the scenario, CoinDCX’s CEO additional stated, “We take any reports of fraudulent activity seriously and have in fact been working with the cyber cell and MeITY on such matters. Our top-notch security team conducts rigorous checks and has uncovered over 80 fraudulent websites/URLs in the recent past masquerading as CoinDCX exchange. We have stated this before and want to reinforce again: the safety and security of users’ funds are our absolute top priorities.”

The complicated flip of occasions come at a time when the Indian authorities is seemingly tightening its noose round crypto gamers, as authorized necessities for these companies to stick to are steadily being introduced within the nation.

Virtual asset service suppliers (VASPs) in India, as an illustration, have already been introduced into the ambit of the Anti-Money Laundering and Counter-Financing of Terrorism (AML-CFT) framework beneath the provisions of the Prevention of Money Laundering Act (PML) Act in March 2023. All crypto-related companies working in India have additionally not too long ago been directed to register themselves with the Financial Intelligence Unit (FIU) to deem their operations authorized within the nation.

As a part of compliance motion towards the offshore entities, the FIU has issued present trigger notices to 9 offshore VASPS beneath Section 13 of the Prevention of Money Laundering Act (PMLA). These corporations are Binance, Kucoin, Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.

For the meantime, the FIU has urged India’s IT ministry to dam the URLs of stated entities which can be working illegally with out complying with the provisions of the PML Act.