Crypto Firm CIFDAQ Faces Leadership Exodus Amid Compliance Woes

Indian cryptocurrency platform CIFDAQ is navigating one of its most turbulent moments as senior leaders exit the company. The CIFDAQ leadership exits include Sanjay Saxena, a former Paytm executive, and Jay Hao, the former CEO of global crypto exchange OKX. Their departures raise fresh concerns over the firm’s compliance, transparency, and overall stability.

Leadership Exits Raise Questions

According to people familiar with the matter, both Saxena and Hao have stepped down from their roles after just months of joining the firm. Their exits come at a time when CIFDAQ is grappling with regulatory challenges, including its failure to secure registration with the Financial Intelligence Unit–India (FIU-IND), which is mandatory for virtual digital asset service providers operating in the country.

CIFDAQ had positioned these high-profile hires as central to its growth strategy, with Hao expected to strengthen international expansion and Saxena leading the India market. Their departure, therefore, represents a major setback for the crypto firm at a time when regulatory scrutiny in India is intensifying.

Compliance Gaps in Focus

Central to the crisis is CIFDAQ’s compliance track record. Despite promoting itself as an exchange with an active native token, CIFD, the token is not available for trading on any recognized crypto exchange or global aggregator platforms such as CoinMarketCap. This discrepancy has added to doubts over the company’s claims and strategy.

The lack of FIU-IND registration is a critical roadblock. Without this license, CIFDAQ cannot operate legally in India, which raises concerns for investors and employees alike. Industry experts say regulatory registration has become a basic requirement for any crypto platform seeking credibility, especially after India tightened oversight of the sector in 2023.

Company’s Response

In response to queries, Himanshu Maradiya, cofounder of CIFDAQ, denied that compliance concerns drove the leadership exits. He said both Saxena and Hao left for “personal reasons” and emphasized that the company is in the process of resubmitting its application to the FIU-IND.

“CIFD tokens are currently not available for trading in India because we are working on compliance. Once registration is complete, we will reintroduce the token in the domestic market,” Maradiya told ET.

Employee Concerns Over Salaries

While regulatory and leadership challenges dominate headlines, CIFDAQ is also dealing with internal unrest. Multiple employees have raised complaints about delayed or non-payment of salaries. According to sources, these grievances have been mounting for several weeks, creating frustration among staff at different levels.

Maradiya addressed the issue directly, admitting that salary payments have been uneven but insisting that progress continues. “We have already paid about 70% of employees, and we will pay the remaining 30% soon. Our teams have already been informed of this,” he said in a statement.

Broader Industry Context

Since April 2023, FIU-IND has required all crypto exchanges operating in India to register, maintain anti-money laundering protocols, and comply with know-your-customer (KYC) regulations. Platforms that fail to meet these requirements face penalties, suspension, or even shutdown.

Several global exchanges have already exited the Indian market due to regulatory hurdles, while homegrown players have scrambled to adapt. CIFDAQ’s struggles therefore highlight the challenges faced by new entrants in a market that demands both compliance and financial stability.

What Lies Ahead

The CIFDAQ leadership exits of Saxena and Hao, coupled with compliance gaps and employee discontent, leave the company at a crossroads. CIFDAQ’s immediate priority is to secure FIU-IND registration, which would allow it to relaunch its token in India and restore credibility with regulators and investors.

However, experts say the bigger challenge will be rebuilding trust. CIFDAQ will need to prove that its token has real utility, ensure timely payment of employee salaries, and demonstrate strong governance to avoid further reputational damage.

For now, the future of CIFDAQ remains uncertain. If the firm can resolve its compliance issues and address internal concerns quickly, it may still carve out a place in India’s evolving crypto landscape. If not, the leadership exits may mark the beginning of a deeper unraveling.

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