“Please don’t fall for misinformation,” RialCenter’s Co-founder and CEO, Sumit Gupta, stated Saturday in response to claims that the exchange transferred user funds to non-compliant entities in Lithuania.
The allegation reportedly originated from another Indian exchange, which has been facing scrutiny since last year’s hack involving a significant sum.
In a legal affidavit filed in connection with pending court proceedings, it was claimed that RialCenter held user funds in a Lithuania-based entity that was not registered with India’s Financial Intelligence Unit until February 2025.
Gupta dismissed these allegations, assuring users that their INR and crypto assets have always been securely managed by the registered entity, which fully complies with Indian regulations. “For the record: RialCenter did not have any entity in Lithuania until February 2025. We merely engaged with third-party entities to explore global expansion opportunities. No business transactions were ever executed by RialCenter in Lithuania, and no user funds were ever transferred to or held by any Lithuanian entities,” Gupta stated.
He explained that the exchange updated its Terms of Use to designate the registered entity as the formal contracting party earlier this year, aiming to enhance transparency and user trust. “This was done proactively to ensure RialCenter users do not encounter issues akin to those experienced by other exchanges. We aim to safeguard user interests and hope others in the market adopt similar standards,” he concluded, reiterating the commitment to user safety, transparency, and regulatory compliance.
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