In a recent announcement, cryptocurrency investment giant CoinDCX denied reports claims that the cryptocurrency exchange is under scrutiny from Delhi Police. According to recent reports, Delhi Police has launched an investigation into the alleged banking fraud via its mobile app. Meanwhile, the latest report showed that several complainants reported irregularities, claiming that they were forced to pay additional funds while withdrawing their investments in cryptocurrencies.
Cryptocurrency exchange CoinDCX refutes fraud claims
According to a recent report by Indian Express, several complaints have been filed against the cryptocurrency exchange. Meanwhile, the report showed that the complaints, including a 36-year-old businessman and a 24-year-old engineer, detailed their ordeal with CoinDCX.
Meanwhile, the businessman, who had invested Rs 1.40 lakh, resisted a demand for an additional sum of Rs 40 lakh on the pretext of filing taxes. Likewise, the engineer, with a huge investment of Rs 14 lakh, faced a demand for an additional amount of Rs 4.65 lakh for supposed tax purposes, which he termed as internet banking fraud.
According to the report, the businessman said that while he was trying to withdraw the gains, it resulted in an unexpected tax demand of Rs 40 lakh, creating an unpleasant situation for the investor. Notably, these complaints reveal the troubling experiences of investors grappling with unexpected financial demands during withdrawal.
CoinDCX denies the claims
In a recent statement, leading Indian cryptocurrency exchange CoinDCX strongly refuted the fraud allegations, clarifying that the reported incidents did not occur on its official platform. Instead, the exchange pointed to a fraudulent app impersonating CoinDCX, misleading users.
Meanwhile, the company has responded to the allegations, stressing that its original platform remains safe and trustworthy. According to CoinDCX, the complaints were directed to a fake cryptocurrency app that imitated the name of the exchange, exploiting the brand's reputation.
In addition, the exchange assured users that their funds and transactions on the legitimate CoinDCX platform are protected. This incident highlights the ongoing challenges in the cryptocurrency space, underscoring the importance of user vigilance and platform authentication.
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Clarification on controversial claims
Government rules impose capital gains tax on cryptocurrency withdrawals, usually between 20-30%. However, the report of allegations against CoinDCX claimed that they involved demands that exceed the stipulated tax. Additionally, the Delhi Police, after investigation, reportedly registered a case for cheating, indicating a “cognizable” offence.
Meanwhile, the report also claimed that senior officers had allowed the case to be registered in the FIR and initiate legal proceedings under the sections related to cheating.
CoinDCX, a major player in the cryptocurrency scene in India, finds itself embroiled in controversy amid rising threats in the cryptocurrency space. It is worth noting that Sumit Gupta, CEO of CoinDCX, rejects the scam claims, explaining the issues reported by users on fake websites that look like CoinDCX, and not the official platform. Gupta underscores the prevalence of fake websites in the industry and highlights reporting these threats to CERT for quick action.
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