Crypto Exchange CoinDCX Dismisses Fraud Allegations Report

CoinDCX, a major crypto investment firm, has refuted recent reports suggesting an investigation by Delhi Police, asserting there is no scrutiny. According to recent reports, Delhi Police has initiated an investigation into alleged bank fraud on its mobile application. Meanwhile, the recent report showed that multiple complainants have reported irregularities, claiming they were coerced into paying additional funds while withdrawing their crypto investments.

Crypto Exchange CoinDCX Refutes Fraud Allegations

According to a recent report by Indian Express, several complaints have been lodged against the crypto exchange. Meanwhile, the report showed that the complaints, including a 36-year-old businessman and a 24-year-old engineer, detailed their ordeals with CoinDCX.

Meanwhile, the businessman, who invested Rs 1.40 lakh, resisted a demand for an extra Rs 40,000 under the pretext of tax submission. Similarly, the engineer, with a substantial investment of Rs 14 lakh, faced a demand for an additional Rs 4.65 lakh for supposed tax purposes, which he decried as internet banking fraud.

According to the report, the businessman said that while attempting to withdraw gains, it led to an unexpected tax demand of Rs 40,000, creating a distressing situation for the investor. Notably, these complaints reveal the unsettling experiences of investors grappling with unexpected financial demands during withdrawal.

CoinDCX Dismisses Claims

In a recent statement, the leading Indian cryptocurrency exchange CoinDCX vehemently refuted allegations of fraud, clarifying that the reported incidents did not occur on their official platform. Instead, the exchange pointed to a fraudulent app that impersonated CoinDCX, misleading users.

Meanwhile, the company responded to the claims, emphasizing that its authentic platform remains secure and trustworthy. According to CoinDCX, the complaints were directed at a counterfeit crypto application that replicated the exchange’s name, exploiting the brand’s reputation.

In addition, the exchange assured users that their funds and transactions on the legitimate CoinDCX platform are safeguarded. This incident underscores the ongoing challenges in the cryptocurrency space, emphasizing the importance of user vigilance and platform authentication.

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Clarification Over Controversial Claims

Government rules mandate capital gains tax on cryptocurrency withdrawals, typically 20-30%. However, the allegations report against CoinDCX claimed that it involved demands beyond the stipulated tax. In addition, the Delhi Police, following an inquiry, has reportedly registered a case under cheating charges, indicating a ‘cognizable’ offense.

Meanwhile, the report also claimed that senior officers have authorized the registration of the case in the FIR, initiating legal proceedings under sections related to cheating.

CoinDCX, a major player in India’s cryptocurrency landscape, finds itself embroiled in controversy amid rising threats in the crypto space. Notably, Sumit Gupta, CoinDCX’s CEO, rejects fraud claims, clarifying users reported issues on fake sites resembling CoinDCX, not the official platform. Gupta emphasizes the prevalence of fake websites in the industry and highlights reporting these threats to CERT for swift action.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

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