Crypto Exchange CoinDCX Faces Fraud Allegations Amid Investors’ Distress In India

In a concerning development in India’s crypto landscape, crypto investment giant CoinDCX is under scrutiny as the Delhi Police initiated an investigation into alleged bank fraud on its mobile application. Meanwhile, a recent report showed that multiple complainants have reported irregularities, claiming they were coerced into paying additional funds during the withdrawal of their crypto investments.

Notably, the unfolding scandal sheds light on potential misconduct within one of India’s prominent crypto platforms.

Indian Crypto Exchange CoinDCX Under Legal Scrutiny

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.

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Regulatory Discrepancies and Police Action

Government rules mandate capital gains tax on cryptocurrency withdrawals, typically ranging from 20-30%. However, the allegations against CoinDCX involve demands beyond the stipulated tax, raising questions about the platform’s conduct. Notably, the Delhi Police, following an inquiry, has registered a case under cheating charges, indicating a ‘cognizable’ offense.

Meanwhile, senior officers have authorized the registration of the case in the FIR, initiating legal proceedings under sections related to cheating. Now, the report showed that the police are actively looking into the matter, aiming to ascertain the authenticity of the complaints and determine whether fraudulent activities have taken place.

CoinDCX, a major player in India’s cryptocurrency landscape, finds itself embroiled in a controversy that could potentially reshape the sector’s regulatory landscape. As the Delhi Police delve into the allegations, investors await clarity on the fate of their funds, highlighting the need for transparency and adherence to regulations in the burgeoning cryptocurrency space.

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