Crypto Exchanges Under Fire: Misuse of Client Assets Raises Concerns in India

A recent investigation by The Times of India has exposed concerns about Indian crypto exchanges, with the Income Tax Department flagging potential misuse of client assets. Sources reveal that these platforms are allegedly deploying user-stored tokens for their own purposes – including lending, staking, and trading – without informing investors about how their funds are being utilized. 🤔 While platforms claim their terms and conditions allow them to use deposited tokens as needed, they often lend or pool them for liquidity, raising questions about transparency.