CoinDCX has halted withdrawals citing wallet maintenance and hence making the users concerned.
CoinDCX announced that its wallet maintenance is extended until further notice.” We are trying our best to complete the upgrade at the earliest possible and keep you posted. During this time, deposit and withdrawal services will continue to remain suspended on our exchange” reads the official announcement.
Many have accused CoinDCX for not allowing them to withdraw their crypto for over a month. CoinDCX is yet to provide an estimated time frame and a valid reason for halting withdrawals. These aspects have raged the users who claim that the platform is taking user’s loyalty for granted.
We tried to contact them through a tweet and got the reply:
Hi Dhirendra, we assure you that with CoinDCX your funds are 100% safe & secure. You can withdraw your funds at any time in case of any uncertainty — CoinDCX Cares (@CoinDCX_Cares) June 20, 2022
The same problem was faced by another user, who got the following reply:
link: https://t.co/CzpyD8cz2q We appreciate your patience and cooperation while we work on this. (2/2) — CoinDCX Cares (@CoinDCX_Cares) June 20, 2022
Responding to a user query on Twitter, CoinDCX Marketing Head Ramalingam S stated that some wallets are under maintenance, and there is a larger compliance requirement due to evolving regulatory needs resulting in increased scrutiny. He further added that the new process is being rolled out in phases, & it will reach all users in due course and also seek users support during this time.
Hi, While some wallets are under maintenance, there is a larger compliance requirement due to evolving regulatory needs resulting in increased scrutiny. The new process is being rolled out in phases, & it will reach all users in due course. Until then, I request your support. — Ramalingam S (CoinDCX) (@watsubram) June 20, 2022
Users are of the opinion that CoinDCX is hiding certain reasons behind withdrawal halts and covering it under the garb of wallet maintenance. Wallet Maintenance usually takes only a few days and not over a month; therefore, speculations and rumors about why CoinDCX has halted withdrawals are brimming.
The speculations regarding CoinDCX’s current financial stability become much more concerning when one looks at the current market condition. Lending platform Celsius recently suspended withdrawals and is rumored to be insolvent. BTC and Ethereum has been bleeding for over a week. Bitcoin is currently trading at slightly above $20,000 – its previous all-time high from 2017. Ethereum went– down 40% and has been trading above the critical level of $1,000 for quite some time now.
According to analysts, Leading hedge fund Three Arrows Capital 3AC’s several multi-million dollar positions are very close to getting liquidated. Considering the bear market and volatile crypto market now, the real reason behind why Indian exchange CoinDCX has been undergoing “wallet maintenance” for over a month will not be good news for the users of the platform.