CoinDCX, often branded as “India’s safest and secure crypto exchange,” has built its public image on one powerful narrative: trust. From patriotic slogans to influencer endorsements, CEO Sumit Gupta has worked hard to project CoinDCX as a domestically rooted, regulator-friendly platform that prioritizes the needs of Indian users.

But the truth is far murkier.

Buried deep in CoinDCX’s own documentation lies a shocking detail: your crypto isn’t actually under Indian protection. It’s being operated by a Lithuanian shell company, far away from Indian jurisdiction. And yes, Sumit Gupta knows this—he just doesn’t talk about it publicly.

The Hidden Operator: Oystex UAB

Let’s unpack the facts.

CoinDCX’s Terms of Use, as of May 2024, include this quiet disclaimer:

“Oystex UAB is a Lithuanian private limited company… All crypto transmission services are being offered by this Partner entity.”

Wait—who is Oystex UAB? And why is a Lithuanian company handling crypto services for an exchange claiming to be 100% Indian?

It turns out Oystex UAB was incorporated in February 2023, right around the time Indian regulators began cracking down on non-compliant crypto businesses. Coincidence? Hardly.

The company is listed in Lithuania’s corporate registry and even uses legal@coindcx.com as its official email. There’s absolutely no speculation. The link is direct. CoinDCX set this up.

A Quiet European Exit Door for CoinDCX

With Oystex UAB now in control of all “crypto transmission services,” CoinDCX has effectively outsourced custody and compliance to the European Union. That means:

• Your crypto is managed outside of India.
• The custodian of your funds is not under SEBI or Indian legal oversight.
• In case of a dispute or loss, you’re bound by Lithuanian laws, not Indian ones.

This isn’t just clever structuring. It’s regulatory arbitrage. CoinDCX has built an “Indian” brand while legally distancing itself from Indian responsibilities.

Gupta’s Half-Truths and Media Spin

Despite this offshore arrangement, CoinDCX’s CEO Sumit Gupta continues to promote the exchange as an Indian-born platform working for Indian users.

He frequently appears on panels talking about crypto innovation in India, casually using phrases like “building for Bharat” or “India’s safest exchange.” However, he has never mentioned Oystex UAB or the Lithuanian registration, not once.

When questions about the Lithuania connection surfaced on 13 July 2025, Gupta brushed them off on X (formerly Twitter):

“We clarified this last year, and it’s even clearly mentioned in our public Terms of Use.”

And yes, technically, that’s true. The Terms of Use do mention Oystex.

But here’s the problem: burying a critical detail in legal fine print isn’t transparency. If you’re going to wave the Indian flag in your branding, you should disclose that your custody is offshored in Europe.

Crypto Influencers: Silent, Paid, or Just Blind?

Perhaps more disturbing than Gupta’s evasion is the total silence from India’s crypto influencer ecosystem.

Where were the so-called crypto educators when this information was publicly available?

Instead of asking tough questions, these influencers continued to push “CoinDCX is safe” narratives—often with sponsored tags or undisclosed affiliations. They flooded social media with PR-friendly threads, “regulatory explainers,” and guides on how CoinDCX complies with Indian law.

Not one of them mentioned Oystex UAB. Not a single one mentioned Lithuania.

This isn’t just oversight—it’s manipulation. CoinDCX fed influencers a ready-made script. And they ran with it.

What This Means for Indian Users?

If you’re a CoinDCX user, here’s what you should know:

• You are not protected by Indian regulations. If your funds are compromised, your only legal recourse is via Lithuania’s virtual asset laws.
• CoinDCX does not operate its crypto services under Indian companies. It uses a European middleman.
• This wasn’t disclosed in any mainstream communication. Only buried in legal terms that most users never read.

In a sector where trust is everything, this kind of structural misrepresentation is dangerous.

Compare This to WazirX: At Least They’re Not Hiding

A better example of transparency might be WazirX—a platform that suffered a massive cyberattack in July 2024. Since then, it has taken visible steps to inform users: restructuring updates, legal disclosures in the Singapore High Court, and communication about its custodian partnerships.

WazirX has had its share of problems. But at least it isn’t hiding about its offshore and Indian entities.

The Ugly Reality

Sumit Gupta is running a shadow exchange. One face smiles in India, gives interviews, and preaches compliance. The other face quietly moved user custody to Lithuania when Indian regulators came knocking.

That’s not “innovation.” That’s deception.

And when you factor in the role of silent influencers, PR partnerships, and buried disclosures, it starts to look less like bad judgment—and more like a deliberate scam in plain sight.

BEWARE: The Red Flag is Waving

CoinDCX has positioned itself as India’s most secure crypto platform. But behind that polished image is a company that has quietly distanced itself from Indian laws and responsibilities.

And in doing so, it has put millions of Indian users at risk.

Don’t fall for the slogans.

Don’t be blinded by the branding.

Always ask where your crypto is really going.

With CoinDCX, it’s not just staying in India.