In a recent statement, CoinDCX, a prominent crypto investment firm, refuted allegations suggesting that the Delhi Police is investigating the crypto exchange. Recent reports had indicated that Delhi Police had launched a probe into alleged bank fraud related to CoinDCX’s mobile application.
However, the latest update reveals several individuals have filed complaints, citing discrepancies and asserting that they were pressured into making extra payments while withdrawing their cryptocurrency investments.
As per a recent article in the Indian Express, numerous grievances have been formally registered against the cryptocurrency exchange. The report highlighted specific complaints from individuals, such as a 36-year-old businessman and a 24-year-old engineer, who shared their experiences dealing with CoinDCX.
Meanwhile, the entrepreneur, who had invested Rs 1.40 lakh, resisted an additional demand of Rs 40,000 under the guise of tax submission. Similarly, the engineer, with a significant investment of Rs 14 lakh, encountered a demand for an extra Rs 4.65 lakh, purportedly for tax purposes, which he denounced as an internet banking fraud.
As per the report, the businessman narrated that an attempt to withdraw profits resulted in an unforeseen tax demand of Rs 40,000, creating a distressing situation for the investor. These complaints vividly highlight the disconcerting experiences of investors facing unexpected financial demands during withdrawal.
In a recent announcement, CoinDCX, the prominent Indian cryptocurrency exchange, vehemently denied accusations of fraud. The exchange clarified that the reported incidents did not occur on their official platform, attributing the issues to a deceptive app that impersonated CoinDCX and misled users.
CoinDCX Combat: Addressing Fraud Allegations & Securing Crypto Users
Moreover, CoinDCX addressed the allegations by emphasizing the security and reliability of its authentic platform. The company stated that the complaints were related to a fraudulent crypto application that mimicked its name, taking advantage of the brand’s reputation.
Furthermore, CoinDCX reassured users that their funds and transactions on the legitimate platform are secure. This incident highlights the ongoing challenges in cryptocurrency and underscores the importance of user vigilance and platform authentication.
Government regulations stipulate a capital gains tax on cryptocurrency withdrawals, typically 20-30%. However, the allegations against CoinDCX suggest that the demands exceeded the prescribed tax rates. Additionally, following an inquiry, the Delhi Police has reportedly filed a case under cheating charges, indicating a ‘cognizable’ offense.
Simultaneously, the report indicates that senior officers have authorized the registration of the case in the First Information Report (FIR), initiating legal proceedings under sections related to cheating.
Controversy is entangling CoinDCX, a significant player in India’s cryptocurrency landscape, amid escalating threats in the crypto space. Notably, Sumit Gupta, CEO of CoinDCX, refutes fraud claims, clarifying that users reported issues on fake sites resembling CoinDCX and not on the official platform. Gupta underscores the prevalence of counterfeit websites in the industry and emphasizes the importance of reporting these threats to CERT for prompt action.
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